MercoPress. South Atlantic News Agency

Paraguayan exports drop but some items post improvements

Importing fruits and vegetables from Argentina is not as affordable as it used to be

Paraguay's Central Bank (BCP) released a report Monday showing that exports fell 7.7% in 2024. However, some items scored significant improvements, as sales abroad totaled US$15.84 billion, while imports amounted to nearly US$16.38 billion. This represents a 3.6% increase for a trade deficit of US$538.8 million, against a surplus recorded the year before after a 2.3% overall contraction.

Exports of primary products amounted to US$4.033 billion, 12.6% less than the previous year, with corn and soybeans accounting for the bulk of operations. When considered by volume, a 0.5% decrease was recorded, which was tantamount to 56.7 thousand tons.

Electricity sales yielded some US$1.154 billion, which also represented a 25.5% decrease.

On the other hand, beef shipments reached US$1.7192 billion, a 12.4% from December 2023 in terms of money and a 7.6% improvement in volume.

In addition, exports of manufactured goods of industrial origin increased 14% last year, according to the Ministry of Industry and Commerce. Aluminum products and textile articles experienced the highest increases, growing by almost 70% and 23% respectively. Wires, cables, and other electricity conductors also went up by 12.4% from 2023, while insecticides, fungicides, and herbicides grew by almost 14%.

In the agricultural sector, shipments of parboiled rice rose by 6.4%. Wheat exceeded 2023's exports by 90%. Other exports grew by 27.4 %, reaching almost US$1.1619 billion, with maquila reporting an increase of 10.4 %.

Agrifood also posted negative figures with a 5.3% reduction in exports of soybean meals and oils (-32% and -20%, respectively).

In this scenario, measures adopted by Argentina's Libertarian government could be affecting fruit and vegetable prices in Paraguay. Association of Fruit and Vegetable Market Traders (Asicofru) Vice President Simón Espínola explained that these products' prices were on the rise in Paraguay mainly due to seasonal factors coupled with poor weather resulting in reduced domestic production, thus leading traders to import from Argentina where prices are no longer as affordable as in previous years.