Economy of Paraguay is presently growing at its greatest pace in Latin America, because of increasing demand and high costs for agricultural items, particularly soy, which is driving the development.

However, the problem is whether the advantages of the rise will dribble down to the deprived majority.

IMF (The International Monetary Fund) amended its own guesstimates upwards and now predicts GDP growth of 10% in present year for Paraguay, putting it forward to Uruguay, Brazil and Argentina its associates in the Southern Common Market(Mercosur), and other booming regional economies such as Peru and Chile.

The Central Bank stated that Gross Domestic product (GDP) for the first half of this year grew by 11.7 percent compared to the same time in 2009 -- and by 12.2 percent in the second quarter of year 2010, from the same quarter of last year.

"The nation has an open economy, and over eighty percent of Gross Domestic product (GDP) is produced by imports and exports," forecaster Lila Moliner told IPS, describing the basis for Paraguay's economic development.

The key lashing force is a record soybean yield of 7.5mn tonnes in year 2009-2010, 1.5mn tonnes more than the last season, the Soy Producers Association stated Monday. Earnings from this year’s soybean exports are anticipated to reach 2.3bn dollars.

Paraguay is the globe's fourth soybean exporter, after the United States, Argentina, and Brazil.

In year 2009, Gross Domestic product (GDP) shrank 3.8%, mostly because of 25% retrenchment in agriculture caused by the global economic crisis and bad weather.

Both international and domestic forecasts show the economy will come back to normal state in year 2011, with a growth rate of around 5 %, only a few tenths of a percentage point greater than the average growth of Paraguay's Gross Domestic product (GDP) in the past 6 years, not counting year 2009.