That dollar amount reflects a 21.5% acceleration since 2017 and a 23.8% increase from 2020 to 2021.
Based on the average exchange rate for 2021, the Paraguayan guaraní has depreciated by -20.6% against the US dollar since 2017 and declined by -0.05% from 2020 to 2021. Paraguay’s weaker local currency make Paraguayan exports paid for in stronger US dollars relatively less expensive for international buyers.
Paraguay’s 10 most valuable exported products are soya beans, electrical energy, fresh or chilled beef, frozen beef, solid residues including soya-bean oil cake, corn, rice, insulated wire or cable, and oil seeds.
Given Paraguay’s population of 7.4 million people, its total $10.5 billion in 2021 exports translates to $1,500 for every resident in the South American nation. That per-capita dollar amount exceeds the average $1,200 one year earlier in 2020.
Paraguay’s Top 10 Exports
The following export product groups categorize the highest dollar value in Paraguayan global shipments during 2021 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$3.1 billion (29.6% of total exports)
- Meat: $1.7 billion (15.6%)
- Mineral fuels including oil: $1.6 billion (15.4%)
- Food industry waste, animal fodder: $833.2 million (7.9%)
- Cereals: $772.2 million (7.3%)
- Animal/vegetable fats, oils, waxes: $701.8 million (6.7%)
- Electrical machinery, equipment: $247.9 million (2.4%)
- Aluminum: $140.5 million (1.3%)
- Beverages, spirits, vinegar: $93.9 million (0.9%)
- Plastics, plastic articles: $92.9 million (0.9%)
Paraguay’s top 10 exports accounted for 87.9% of the overall value of its global shipments.
Aluminum was the fastest grower among the top 10 export categories, up by 83.7% from 2020 to 2021.
In second place for improving export sales was animal or vegetable fats, oils and waxes which was rose 49%.
Paraguay’s shipments of meat posted the third-fastest gain in value up by 39.4%.
Year over year, the sole decliner among Paraguay’s top 10 export categories was mineral fuels including oil which fell -6.8% weighed down by lower international revenues from electrical energy and refined petroleum oils.
At the detailed 4-digit Harmonized Tariff System (HTS) code level, soya beans dominate Paraguay’s most valuable export products. Exported soya beans now represent well over a quarter (28.2%) of all Paraguayan shipments by value.
In second place is Paraguay’s exports of electrical energy at 15.4%. Other top Paraguayan exported products include fresh or chilled beef (7.5%), frozen beef (7.3%), soya-bean oil cake plus other solid residues (7.2%), soya bean oil (5.9%), corn (3.9%), rice (2.6%), insulated wire or cable (2.2%) then oil seeds (1.1%).
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$3.1 billion (Up by 37% since 2020)
- Meat: $1.6 billion (Up by 39.5%)
- Food industry waste, animal fodder: $755.6 million (Up by 13%)
- Cereals: $690.8 million (Up by 10.4%)
- Animal/vegetable fats, oils, waxes: $672.2 million (Up by 54.8%)
- Raw hides, skins not furskins, leather: $69.1 million (Up by 128.5%)
- Wood: $58 million (Up by 51%)
- Miscellaneous textiles, worn clothing: $41.2 million (Up by 14.5%)
- Sugar, sugar confectionery: $39.6 million (Up by 7.5%)
- Felt, yarn, twine, ropes, cables: $31 million (Up by 32.9%)
Paraguay has highly positive net exports in the international trade of oil seeds which are 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 oil seeds category and related products.
Products Causing Paraguay’s Greatest Trade Deficits
Overall Paraguay incurred a -$3 billion trade deficit for 2021, a 112.5% increase from the -$1.4 billion in red ink during 2020.
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 billion (Up by 19.1% since 2020)
- Machinery including computers: -$1.6 billion (Up by 48.6%)
- Vehicles: -$1.2 billion (Up by 38.1%)
- Fertilizers: -$596.6 million (Up by 48.5%)
- Plastics, plastic articles: -$464.9 million (Up by 41.4%)
- Other chemical goods: -$404.8 million (Down by -3.7%)
- Iron, steel: -$402.3 million (Up by 80.4%)
- Rubber, rubber articles: -$362 million (Up by 72.1%)
- Pharmaceuticals: -$336.5 million (Up by 48.8%)
- Organic chemicals: -$299.3 million (Up by 60.7%)
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)
Where Paraguay’s Top Trading Partners Are Located
The latest available country-specific data shows that 88.3% of products exported from Paraguay were bought by importers in: Brazil (33.7% of the global total), Argentina (26.1%), Chile (9.4%), Russia (6.7%), United States of America (2.1%), India (2%), Uruguay (1.6%), Peru (also 1.6%), Taiwan (1.5%), Israel (also 1.5%), Poland (1.2%) and the United Kingdom (1%).
From a continental perspective, 73.7% of Paraguay exports by value were delivered to Latin America excluding Mexico but including the Caribbean countries while 12.4% were sold to European importers. Paraguay shipped another 10% worth of goods to Asia.
Smaller percentages went to North America (2.3%), Africa (1.5%) then Oceania led by Australia (0.04%).
In macroeconomic terms, Paraguay’s total exported goods represent 10.5% of its overall Gross Domestic Product for 2021 ($100.9 billion valued in Purchasing Power Parity US dollars). That 10.5% for exports to overall GDP in PPP for 2021 compares to 9.4% for 2020. 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 was 6.053% at October 2021, down from an average 6.514% for 2020 according to the International Monetary Fund.
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 5, 2022
Forbes Global 2000 rankings, The World’s Biggest Public Companies. Accessed on April 5, 2022
International Monetary Fund, Exchange Rates selected indicators (Domestic Currency per U.S. dollar, period average)
International Monetary Fund, World Economic Outlook Database (GDP based on Purchasing Power Parity). Accessed on April 5, 2022
International Trade Centre, Trade Map. Accessed on April 5, 2022
Investopedia, Net Exports Definition. Accessed on April 5, 2022
Wikipedia, Companies of Paraguay by industry. Accessed on April 5, 2022
Wikipedia, Gross domestic product. Accessed on April 5, 2022
Wikipedia, Purchasing power parity. Accessed on April 5, 2022
