Paraguay Identifies Plastic and Pharmaceutical Sectors for Industrial Growth

The Paraguayan Industrial Union (UIP) has released a significant study, developed in collaboration with the Center for Economic Studies and backed by the International Labour Organization (ILO), identifying key sectors poised for industrial growth. This research, presented by Julio Fernández, head of the UIP's Center for Economic Studies, offers a roadmap for transforming Paraguay's productive matrix and fostering decent work.

Out of eight strategically identified sectors with development potential, the study focused on four: plastics, pharmaceuticals, agrochemicals, and metallurgy. While none achieved the ideal score of 80-100 points, the plastic sector emerged as the frontrunner with 71.4 points, deemed the most viable for immediate expansion. The pharmaceutical sector followed closely with 69.14 points, classified as 'Eligible with Conditions,' highlighting its potential for impacting health and technical exports.

Fernández emphasized that these sectors were prioritized based on their high development potential, existing production capacity, and ability to create substantial economic impacts. The study, titled "Design of a roadmap for an industrial development and decent work policy in Paraguay," aims to guide policy decisions toward sustainable industrialization. The agrochemical and metallurgical sectors, while presenting opportunities, require a more cautious approach, focusing on overcoming technological gaps.

Factors influencing these sectors' performance include the availability and cost of inputs, technological adoption, innovation levels, and logistical and energy conditions. Importantly, the study indicates that these sectors, particularly the labor-intensive plastic industry, hold favorable conditions for job creation. This focus on industrial development, especially in sectors with immediate viability, signals a strategic push by Paraguay to diversify its economy and enhance its global competitiveness.

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In this first stage, these four elements are prioritized considering their high development potential, their existing production base, and their capacity to generate relevant impacts on the economy.