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There was a boom in consumption and investment

According to Central Bank of Paraguay, in its report on government expenditure grew 13%
(by Prof. Andrew Laconich)

The analysis of this information provided by the country's monetary agency, we must look primarily the behavior of gross capital formation, in other words, states that the expenditures arising from this component will be maintained , for the simple fact that an investment is undertaken, and not be stopped by putting it into production, in contrast to other aspects of the business side or the demand, which may reflect only the income derived cycle, which can be temporary or seasonal .

Any doubts that may arise will receive in the class, to any member of the class macroeconomics.

From the perspective of spending, it was noted that domestic demand grew by 9.1% in terms of annual rate. Among its components shows that the Total Consumption (CT) had an increase of 8.1% and the Gross Capital Formation (GCF) also provided a surge of 14.7%, both in the same term.

Fundamentally, this behavior is linked to better economic environment, which renewed the agents' expectations, causing the one hand, an increase in purchases of durable and nondurable goods, and on the other, greater dynamism in investment, both private and public sectors, especially in civil construction and infrastructure, resulting in strong growth in domestic demand.

Both subcomponents of total consumption in this way show similar behavior. Thus, public consumption showed a significant expansion of 12.9%. For their part, private consumption also had a significant increase of 7.5%, after passing for four consecutive quarters of falls.

The greatest contribution of private consumption was 5.6 percentage points, followed by FBK incidence of 2.4 points of GDP. Net exports and government consumption contributed 1.9 and 1.1 percentage points, respectively, said the report provided by the Bank Central.del Paraguay

On the other hand, exports of goods and services showed a increase of 26.2% in annual terms. This result was influenced especially by increases in major export items, reflected in the volume of shipments of soybeans and beef abroad.