Paraguay's manufacturing sector is showing consistent growth and has become a key driver of the national economy. On the occasion of "Industry Day" on the 8th, Paraguay celebrated the opening of the country's first metal factory, 'La Rosada,' in Ybycuí in 1854, and commemorated the development of its industrial sector. In a report published on the day, the Ministry of Industry and Commerce (MIC) disclosed the remarkable achievements of the manufacturing industry.
According to the MIC, in 2024, Paraguay's manufacturing sector recorded $8.548 billion, representing 19% of the Gross Domestic Product (GDP) and an increase of $170 million from the previous year. Exports also reached $5.692 billion, and the country attracted a total of $2.862 billion in investments, demonstrating robust economic activity. The total number of operational manufacturing plants nationwide reached 29,771, showing an average annual growth rate of 3.14% over the past decade.
What is particularly noteworthy is the diversification of the manufacturing sector. The industrial structure, which had previously relied on the processing of agricultural and livestock products (meat, dairy products, and biofuels), has significantly changed in recent years. Manufacturing in various fields such as assembly, textiles, plastics, and metal products is growing rapidly, thanks mainly to the maquila industry, which offers tax exemptions and investment incentives. Currently, 46.2% of all industrial activity is concentrated in metal products, apparel, and the food industry, with sectors like furniture, wood, and printing also expanding their presence.
The growth of the manufacturing sector is also having a positive impact on the job market. As of 2024, more than 550,000 Paraguayans are employed in the secondary sector, with 333,000 of them working in manufacturing. Female employment, in particular, is strong, with 105,727 women working in the manufacturing sector.
Paraguayan industries exhibit different characteristics by region. 67% of all factories are concentrated in the metropolitan areas of Central and Asunción, and in Alto Paraná, which is adjacent to the Brazilian border. This is due to the geographical advantages of well-developed logistics and transportation infrastructure and the convenience of cross-border trade. The Itapúa and Caaguazú regions have also attracted a significant number of businesses.
The Paraguayan government is pursuing new policies for the sustained growth of the manufacturing sector. On the 8th, three new laws were enacted to foster new industries such as forestry, entertainment, knowledge, and services, and to strengthen traditional industries. These include enhancing tax benefits to attract domestic and foreign investment, amending the Maquila Law, and establishing a national policy regarding the production and assembly of electrical, electronic, and digital equipment. These efforts are expected to contribute to making Paraguay a competitive industrial hub in the region and elevating the national economy to the next level.
[Copyright (c) Global Economic Times. All Rights Reserved.]
