Paraguay Faces Trade Setback in H1 2025 as Soybean Exports Drop, Beef Rises

Paraguay’s economy took a hit in the first half of 2025, according to official data from the Central Bank of Paraguay. The country’s exports fell by 7.6 percent compared to the same period last year, totaling $7.83 billion instead of $8.47 billion.

At the same time, imports rose by 6.6 percent to $8.53 billion. This shift turned last year’s trade surplus of $469 million into a deficit of $697.9 million. The main cause is Paraguay’s heavy reliance on soybeans, its top export.

Soybean sales dropped by over 15 percent due to lower global prices and weaker harvests after poor weather. Corn, wheat, and rice exports improved but could not fill the gap left by soybeans.

Beef exports stood out as a bright spot. They jumped almost 35 percent in value, reaching $1.03 billion, and rose 15.8 percent in volume. Most beef went to Chile, Taiwan, and the United States, with new access to North American markets helping boost sales.

Electricity exports, another important sector, increased by 7.3 percent in volume, reaching over 8,000 gigawatt-hours. However, the total value of energy exports fell by nearly 9 percent, reflecting lower prices.

Imports grew mainly because local industries bought more machinery and raw materials. While this suggests investment at home, it also widened the trade gap. Paraguay traded with 136 countries for exports and imported from 156.

This trade deficit marks a change for Paraguay, which usually relies on selling farm goods to keep its economy stable. The numbers show how risky it is to depend so much on one crop.

While beef and electricity exports are growing, they have not yet made up for the loss in soybeans. If this trend continues, Paraguay could face more pressure on its currency and public finances.

The story of Paraguay in 2025 is a warning about the dangers of putting too many eggs in one basket. The country’s future stability may depend on finding new ways to grow beyond soybeans.

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