January 4, 2010

Paraguay soy harvest seen to hit record in 2010

A record soy harvest is expected in Paraguay, the country's biggest export, which is seen to grow the country's economy by 4.2% in 2010.

According to Paraguay Economy Minister Dionisio Borda, the forecast would mark a return to growth after projections the economy will shrink 3.8% this year, hit by the global economic crisis and a prolonged drought.

"The growth is expected largely because of a recovery in the agricultural sector, where a big jump in production is forecast," Borda said.

Soy production in the world's No. 4 supplier is expected to rise to 7 million tonnes from 3.9 million tonnes in the previous harvest.

Meanwhile, soy and beef exports are the engines of the Paraguayan economy, which grew by 5.8% in 2008.