Paraguay - Market OverviewParaguay - Market Overview
- Paraguay has a small but rapidly growing open economy (3.5 percent GDP growth in 2015, 4 percent in 2016, and a projected 4.2 percent for 2017), with strong demand for U.S. manufactured products, and the potential for continued growth over the next decade.
- U.S.-Paraguay trade was $2.1 billion in 2016, with the United States enjoying a $1.8 billion surplus. U.S. goods exports of $2 billion included machinery, mineral fuels, toys and sports equipment, and optical and medical instruments. Imports from Paraguay, totaling $157 million, were primarily sugar, oil seeds, precious metal and stone, wood, and products of animal origin.
- Paraguay generally has a strong macroeconomic position. The United States is the largest owner of FDI stock in Paraguay, followed by Brazil, Spain, the Netherlands andPanama. Foreign exchange reserves are USD 7.8 billion, about twice the amount of its external debt. The country’s debt-to-GDP ratio is 23.8 percent, one of the lowest in the region. Inflation was 3.9 percent in 2016, also one of the lowest of the region.
- The services sector, including restaurants and hotels, transportation, financing, and retail, account for 62.6 percent of GDP. Agriculture, forestry, fishing and cattle ranching create 18.9 percent of the wealth, with industry and mining constituting another 13.1 percent. Construction and water and gas distribution account for 5.4 percent of GDP.
- Agriculture commodities dominate Paraguay’s exports, accounting for roughly 77 percent of $11.2 billion exports in 2016. Paraguay is the world’s largest exporter of organic sugar, second largest producer and exporter of stevia, sixth largest soy producer, and seventh largest beef exporter.
- Paraguay’s large pool of young workers - 50 percent of Paraguay’s population is younger than 25 and 30 percent younger than 15 – is favorable to labor-intensive industry sectors.
Paraguay Trade Development and Promotion