MercoPress. South Atlantic News Agency

Paraguay's economy grows strongly in February

In addition, Paraguay recorded a foreign trade surplus in Q1 of 2025

The Estimator of Business Figures (ECN) published by Paraguay's Central Bank (BCP) mentioned a 6% year-to-date sales increase and a 5.2% year-on-year rise compared to February 2024.

Key sectors driving this growth included services (transport, telecom, business, real estate, hotels), industry (meat, metal products, dairy, chemicals), and commerce (household equipment, food, pharmaceuticals, vehicles). However, sales in fuels, clothing, oils, leather, and sugar lagged. The Central Bank of Paraguay noted that tax revenues rose 10% in Q1, aligning with sustained GDP growth.

Additionally, Paraguay’s foreign trade balance in Q1 recorded a US$ 32 million surplus, driven by a 1.4% export increase to US$ 4.087 billion, particularly in beef, offal, aluminum, and cables. Imports grew 4.3% to US$ 4.056 billion, with purchases from 143 countries, reflecting robust economic activity.

The ECN is a short-term indicator that measures sales declared to the Tax Revenue Directorate (DNIT). In this regard, it is worth noting that in the first quarter of the year, the Directorate of Tax Revenues has already recorded a 10% increase in tax revenues and expects to reach a record collection in April, when the Corporate Income Tax (IRE) is due.

According to DNIT Director Óscar Orué, this growth observed in collections is in line with the economic performance in the last three years of sustained growth of the Gross Domestic Product (GDP).

According to the BCP report, the year-on-year result of the ECN is mainly due to the favorable dynamics of sales in services, manufacturing industries, and commerce.

In services, there was a favorable performance in transport, telecommunications and information, business, household, and real estate services, as well as in hotels and restaurants. On the other hand, growth was noticeable in meat, metal products, mills and bakeries, machinery and equipment, dairy products, paper and paper products, chemicals, textiles and clothing, beverages and tobacco, and wood.

Also showing positive results were household equipment, food, chemical and pharmaceuticals, vehicles and maintenance, fertilizers and agrochemicals, retail and technologies.

On the negative side, oils, leather and footwear, sugar, non-metallic minerals, base metals, oils, fuel, clothing, agricultural raw materials, and livestock showed negative results.

At the same time, Paraguay’s foreign trade closed 2025's first quarter with a surplus of US$ 32 million, thanks to a 1.4% increase in exports compared to the first three months of last year. Total exports barely exceeded US$ 4.08 billion, a 1.4% increase over the amount recorded in March of 2024. Agricultural-based manufactured goods alone recorded a 14.9% increase in the same time frame due mainly to higher shipments of beef and offal. Paraguay has a portfolio of 123 customer countries.

Industrial-based manufactured goods amounted to US$ 417.6 million, marking a 6.6% yoy increase driven mainly by higher aluminum exports, including wires and other conductors.

On the other hand, total imports amounted to US$ 4.05 billion, representing a 4.3% increase, with purchases from 143 countries.