Value added becomes the gauge of Paraguay’s economy

Paraguay’s changing export profile is being presented as a measure of the economy’s transformation. Industry is seeking to move beyond raw materials and expand production of goods with greater added value, while local companies take a larger role.

Industry Minister Marco Riquelme said the sector is experiencing one of its most dynamic periods for attracting investment, creating jobs and diversifying industrial exports. The sector represents 19% of gross domestic product, equivalent to about $9.446 billion. Data from the National Institute of Statistics show 29,771 industries employing 353,031 people.

Manufacturing has also strengthened formal employment. Riquelme said new industrial investment and support policies helped reduce the informality rate from about 62% in 2020 to 55% in 2025. In 2025, manufactured exports from agricultural and industrial sources reached $6.311 billion, up 11% from $5.692 billion a year earlier.

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Manufacturing has shown strong dynamism in formal employment, driven by new industrial investment and support policies.

Paraguay still exports large volumes of primary products, but the balance is changing. According to ministry data, primary products and energy account for 43% of exports, while manufactured goods make up 57%. Riquelme said the ministry does not seek to replace the sectors that traditionally drove the economy. Instead, its strategy is to develop and export goods with more added value and technological content.

The ministry is promoting value chains and the industrial transformation of natural resources. Riquelme identified faster logistics, specialized human capital and financing as the main challenges, along with ensuring that industries receive enough electricity where they operate. He said the growing role of agricultural and industrial manufacturing in exports is creating greater resilience and stability.

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The MIC strategy is not aimed at replacing the sectors that have traditionally driven our economy, but at moving toward the production and export of goods with greater added value and greater technological content.