Paraguay’s Economic Growth Shows Resilience Amid Global Challenges
Paraguay’s monthly economic activity indicator (IMAEP) rose by 4.5% year-on-year in August, with overall growth reaching 5.6% by the end of the month, driven by a robust 7.1% increase in the Secondary Sector, particularly in electricity generation and construction, reports 24brussels.
Manufacturing experienced a notable increase of 5.9%, influenced by production gains in oils, dairy, sugar, beverages, textiles, and metals. However, this growth was somewhat offset by declines in meat and various other food categories.
The Services sector also expanded by 4.9%, aided by strong performances in hospitality, commerce, finance, and transport. Nonetheless, government, telecommunications, and information services displayed weak growth trends.
In the Primary Sector, which includes agriculture and livestock, production rose by 4.3%, buoyed by higher outputs of corn, wheat, rice, and cotton. Despite these gains, decreased production in soybeans, cattle, and poultry somewhat tempered the overall figures.
A report from the Vice Ministry of Industry indicates that the Maquila Sector—an export-oriented framework offering substantial tax and customs incentives—shipped goods valued at US$921 million from January to September 2025, representing an increase of US$117 million compared to the same period in 2024.
This sector’s exports were dominated by auto parts, clothing, textiles, aluminum products, and food items. The industry created over 35,000 jobs, including a net gain of 6,550 positions over the past year.
The Maquila sector maintained a positive trade balance, with exports exceeding imports by 83%, underlining the significant added value of products processed under this regime.
Mercosur remained the leading destination for Paraguayan exports, accounting for 81% of total exports, with Brazil as the top trading partner at 64%, followed by Argentina at 15%.
