Paraguay, with a population of 6,780,744, is ranked 103rd in the world, just behind Libya. Located in South America, it covers a total area of 406,752 square kilometers, ranking 59th globally, just below Iraq.
Paraguay’s economic position in 2022 is relatively stable, with a GDP of $41,722,295,229.22, ranking 96th globally. It is closely behind Cameroon, which has a GDP of $43,644,068,310.85. Paraguay’s GDP per capita is $6,153.06, placing it at the 102nd position worldwide.
It trails behind Marshall Islands, with a GDP per capita of $6,225.18. Despite facing challenges, Paraguay continues to show resilience and potential for growth in various sectors of its economy.
What are the economic activities of Paraguay?
- Primary activities: 17.9% of GDP.
- Secondary activities: 27.7% of GDP.
- Tertiary activities: 54.5% of GDP.
Primary Sector of Paraguay
The primary sector in Paraguay, heavily reliant on agriculture, thrives due to its favorable climate and abundant natural resources. With 42.31% of the country’s land dedicated to agriculture, Paraguay produces a variety of crops and animal products, including sugarcane, maize, soybeans, cassava, rice, wheat, milk, beef, oranges, and oil palm fruit.
Despite agriculture contributing 17.9% to the GDP, its significance lies in the diverse range of products that sustain the country’s agricultural sector, showcasing its importance to the economy.
Paraguay’s diverse geology provides rich natural resources such as hydropower, timber, iron ore, manganese, and limestone. These resources drive the economy, with hydropower leading energy production, timber supporting the construction industry, and minerals fueling industrial growth.
Secondary Sector of Paraguay
What is the secondary sector or what are secondary activities?
The secondary sector encompasses industries that transform raw materials from primary activities into finished products for consumption. In Paraguay, key industrial products include sugar processing, cement, textiles, beverages, wood products, steel, base metals, and electric power.
Manufactures in Paraguay’s total exports in 2023 accounted for 13.72%, indicating their relatively minor importance compared to other sectors.
Tertiary sector of Paraguay
What is the tertiary sector or what are tertiary activities?
The tertiary sector in Paraguay encompasses various services where individuals provide knowledge and time to enhance productivity and fulfill needs. This sector involves intangible goods such as advice, expertise, and attention, catering to both consumers and businesses. Key tertiary activities in Paraguay include healthcare and medical care, education and training, banking and finance, communication and information exchange, tourism and hospitality, and transportation and logistics.
In particular, Paraguay’s tourism industry plays a crucial role in its economy, contributing substantially to its annual revenue. With an impressive 4,368,000 annual arrivals and a tourist-to-population ratio of 0.6442, the sector thrives. The Jesuit Missions of La Santísima Trinidad de Paraná and the Itaipu Dam stand out as popular tourist destinations, attracting visitors from around the globe.
Another example of tertiary economic activity is the mobile cellular sector, with approximately 8.7 million subscriptions, equating to 128 per 100 inhabitants. This connectivity fosters technological growth, enabling innovation and digital services.
Military Activities and Economic Sectors of Paraguay
The military is a good example of many economic activities. It uses resources from the primary sector, like minerals and fuel, for its needs. The secondary sector helps by making military equipment, such as weapons and vehicles. The military also provides services in the tertiary sector, like training and logistics. Research and development in the quaternary sector helps improve technology, while the quinary sector focuses on high-level decision-making and strategy.
In Paraguay, the military expenditure for 2023 is 397.9 million US dollars, which is 0.83% of the country’s GDP. The active military force has 13,950 personnel, giving a rate of 27.5 active military members per 1,000 people in the country.
Biggest company in Paraguay
Which is the biggest company in Paraguay? EDP-Energias de Portugal is the largest, with a market value of $19.63 billion. It operates in the energy industry, focusing on electricity production and distribution. Founded in 1976, it plays a key role in the primary economic sector.
International Trade of Paraguay
Import Activities of Paraguay
Paraguay’s import activities are crucial, with imports totaling $16.1 billion in 2023, accounting for 39.38% of the country’s GDP.
Paraguay’s key import activities include acquiring refined petroleum, broadcasting equipment, cars, fertilizers, and pesticides. Its major partners are China (28%), Brazil (23%), US (11%), Argentina (8%), and Chile (3%).
Exports Activities of Paraguay
Paraguay’s export activities play a medium level of importance, accounting for 34.48% of its GDP in 2023, totaling $11,890,536,801.81. This demonstrates a significant contribution to the country’s economic growth.
Paraguay’s export activities are diverse, with beef, electricity, soybeans, corn, and soybean meal being key commodities. The country’s top export partners include Brazil, Argentina, Chile, Russia, and the US, with Brazil being the largest at 36%.
Paraguay economy challenges in 2024
Paraguay, an upper middle-income South American economy, faces challenges in 2024. Hit by COVID-19 during recovery from the 2019 recession, the country struggles with corruption, money laundering, and income inequality. Despite being a global hydroelectricity leader, Paraguay’s highly agrarian economy is hindered by these issues.
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