That dollar amount results from a 55.4% increase compared to $7.65 billion five years earlier during 2019.
Year over year, the overall value of Paraguay’s exports accelerated by 19.5% from $9.95 billion in 2022.
Based on the average exchange rate for 2023, the Paraguayan guaraní depreciated by -16.8% against the US dollar since 2019 and diluted by -4.4% from 2022 to 2023. Paraguay’s weaker local currency make Paraguayan exports paid for in stronger US dollars relatively less expensive for international buyers.
Best International Customers for Paraguayan Exports
The latest available country-specific data shows that 87.4% of products exported from Paraguay were bought by importers in: Argentina (36.1% of the Paraguayan total), Brazil (25.3%), Chile (9.7%), United States of America (2.33%), Russia (2.24%), Uruguay (2.18%), Taiwan (1.88%), India (1.85%), Netherlands (1.81%), Peru (1.78%), Hong Kong (1.1%) and Vietnam (1.08%).
From a continental perspective, 77.1% of Paraguay exports by value was delivered to Latin America excluding Mexico but including the Caribbean countries while 11.1% was sold to importers in Asia. Paraguay shipped another 7.9% worth of goods to Europe.
Smaller percentages went to buyers in North America (2.6%), Africa (1.2%), then Oceania (0.05%) mostly Australia.
Given Paraguay’s population of 7.56 million people, its total $11.9 billion in 2023 exports translates to $1,600 for every resident in the South American nation. That per-capita dollar amount exceeds the average $1,300 one year earlier in 2022.
Paraguay’s Top 10 Exports
The following export product groups categorize the highest dollar value in Paraguayan global shipments during 2023 at the 2-digit Harmonized Tariff System (HTS) code level. Also shown is the percentage share each export category represents in terms of overall exports from Paraguay.
- Oil seeds: US$3.6 billion (30.6% of total exports)
- Meat: $1.63 billion (13.7%)
- Mineral fuels including oil: $1.57 billion (13.2%)
- Cereals: $1.2 billion (10.4%)
- Food industry waste, animal fodder: $991.2 million (8.3%)
- Animal/vegetable fats, oils, waxes: $627.6 million (5.3%)
- Electrical machinery, equipment: $336.4 million (2.8%)
- Beverages, spirits, vinegar: $142.4 million (1.2%)
- Other chemical goods: $130.3 million (1.1%)
- Aluminum: $98.4 million (0.8%)
Paraguay’s top 10 exports accounted for 87.5% of the overall value of Paraguayan shipments.
Oil seeds was the fastest grower among the top 10 export categories, up by 161.9% from 2022 to 2023.
In second place for improving export sales was food industry waste and animal fodder via a 46.3% advance.
Paraguay’s shipments of electrical machinery and equipment posted the remaining gain in value, up by 14.8%.
The leading decliner among Paraguay’s top 10 export categories was aluminum, pulled down by a -36.1% year-over-year drop.
Drilling down to the more detailed 4-digit Harmonized Tariff System (HTS) code level, Paraguay’s most lucrative exports are soya beans (28.8% of total Paraguayan exports), electrical energy (13.2%), soya-bean oil-cake and other solid residues (7.4%), fresh or chilled beef (6.7%), corn (6.3%), frozen beef (6.2%), soya-bean oil (4.3%), rice (3.5%), insulated wire or cable (2.6%), then oil seeds (1.6%).
Products Generating Paraguay’s Greatest Trade Surpluses
The following types of Paraguayan product shipments represent positive net exports or a trade balance surplus. Investopedia defines net exports as the value of a country’s total exports minus the value of its total imports.
In a nutshell, net exports represent the amount by which foreign spending on a home country’s goods or services exceeds or lags the home country’s spending on foreign goods or services.
- Oil seeds: US$3.6 billion (Up by 169.3% since 2022)
- Meat: $1.6 billion (Down by -12.2%)
- Cereals: $1.1 billion (Down by -19.9%)
- Food industry waste, animal fodder: $908.5 million (Up by 53.3%)
- Animal/vegetable fats, oils, waxes: $605.4 million (Down by -2.6%)
- Wood: $61.9 million (Down by -21.3%)
- Miscellaneous textiles, worn clothing: $46.2 million (Down by -16.5%)
- Other base metal goods: $34 million (Up by 116.1%)
- Raw hides, skins not furskins, leather: $33.7 million (Down by -41.4%)
- Fruits, nuts: $24.5 million (Reversing a -$3 million deficit)
Paraguay has highly positive net exports in the international trade of cereals, meat and oil seeds. That latter commodity represents products used for making edible oils and producing biodiesel. It also serves as high protein animal feed. Positive cashflows indicate Paraguay’s strong competitive advantages under the related product categories.
Products Causing Paraguay’s Greatest Trade Deficits
Paraguay incurred a total -US$4.2 billion trade deficit for 2023, a -39.7% reduction from the -$5.9 billion in red ink one year earlier during 2022.
Below are exports from Paraguay that result in negative net exports or product trade balance deficits. These negative net exports reveal product categories where foreign spending on home country Paraguay’s goods trail Paraguayan importer spending on foreign products.
- Electrical machinery, equipment: -US$2.9 billion (Up by 39.2% since 2022)
- Machinery including computers: -$1.9 billion (Up by 5.3%)
- Vehicles: -$1.3 billion (Up by 2.5%)
- Fertilizers: -$693.8 million (Down by -9.4%)
- Mineral fuels including oil: -$534.9 million (Down by -41.5%)
- Other chemical goods: -$422.7 million (Down by -10.8%)
- Pharmaceuticals: -$412.1 million (Up by 14.7%)
- Plastics, plastic articles: -$408.1 million (Down by -17.1%)
- Rubber, rubber articles: -$406.1 million (Down by -4.2%)
- Organic chemicals: -$294.3 million (Down by -22.7%)
Paraguay has highly negative net exports and therefore deep international trade deficits for electronics-related goods including consumer electronics.
These cashflow deficiencies clearly indicate Paraguay’s competitive disadvantages in the international electronics market, but also represent key opportunities for Paraguay to improve its position in the global economy through focused innovations.
Paraguay’s Exports Companies
According to Wikipedia, the following companies are examples of leading Paraguayan companies.
- Banco Amambay (bank)
- Funcionale (electronics company)
- Itaú Unibanco (bank)
- Petróleos Paraguayos (oil and gas company)
- TAM Airlines (airliner)
In macroeconomic terms, Paraguay’s total exported goods represent 10.1% of its overall Gross Domestic Product for 2023 ($117.3 billion valued in Purchasing Power Parity US dollars). That 10.1% for exports to overall GDP in PPP for 2023 compares to 9.2% for 2022. Those percentages suggest a relatively increasing reliance on products sold on international markets for Paraguay’s total economic performance, albeit based on a very short timeframe.
Another key indicator of a country’s economic performance is its unemployment rate. Paraguay’s unemployment rate averaged 6.19% in 2023, down from an average 6.808% for 2022 according to International Monetary Fund statistics.
Domestically, Paraguay’s inflation rate averaged 4.729% in 2023 down from an average 9.766% one year earlier.
Paraguay’s capital city is Asunción, of which the metropolitan area is home to nearly a third of the country’s population.
See also Brazil’s Top 10 Imports, Brazil’s Top Trading Partners, Argentina’s Top 10 Imports and Top South American Export Countries
Research Sources:
Central Intelligence Agency, The World Factbook Country Profiles, Central Intelligence Agency. Accessed on April 3, 2024
Forbes Global 2000 rankings, The World’s Biggest Public Companies. Accessed on April 3, 2024
International Monetary Fund, Exchange Rates selected indicators (Domestic Currency per U.S. dollar, period average). Accessed on April 3, 2024
International Monetary Fund, World Economic Outlook Database (GDP based on Purchasing Power Parity). Accessed on April 3, 2024
International Trade Centre, Trade Map. Accessed on April 3, 2024
Investopedia, Net Exports Definition. Accessed on April 3, 2024
Wikipedia, Companies of Paraguay by industry. Accessed on April 3, 2024
Wikipedia, Gross domestic product. Accessed on April 3, 2024
Wikipedia, Purchasing power parity. Accessed on April 3, 2024