FAO Agricultural Development Economics Policy Brief, No. 52.

This brief presents prospective scenarios that provide information on where, within Paraguayan agriculture, the few public investment resources that would be allocated to the sector should be prioritized. A new public investment equivalent to 0.25% of GDP in the 2023–2025 period (1 798 billion guaranies in 2014), financed with external borrowing, would contribute to economic recovery. The increases in private consumption and GDP are between 0.1% and 0.2%, depending on the sector receiving the investment in agriculture. The increases in agrifood GDP are somewhat higher and the reductions in the national poverty rate vary between 0.2% and 0.5%.

The findings reported in this brief have been adapted from the FAO Agricultural Development Economics Technical Study No. 19 Inversión pública productiva en la agricultura para la recuperación económica con bienestar rural: un análisis de escenarios prospectivos para Paraguay (in Spanish).