Paraguay - Germany Trade 2023 Q2: Widening Deficit

Key Market Takeaways: Paraguay - Germany Trade

The bilateral trade relationship between Paraguay and Germany reflects a widening deficit amid volatile growth in 2023 Q2.

• Economic Pulse: Paraguay posted a $70.46M trade deficit with Germany ($82.20M imports vs. $11.74M exports), with exports declining YoY while imports showed erratic swings.
• Exchange Structure: Paraguay - Germany trade statistics reveal a resource-for-tech dynamic—meat and oilseeds (54% of exports) flow to Germany, while pharmaceuticals and machinery dominate imports (21.3% and high-value industrial goods).
• Strategic Interdependence: Germany holds the high-value position, supplying critical tech and medical products, while Paraguay remains an agricultural supplier with limited export diversification.

This bilateral trade snapshot is based on verified customs data from the yTrade database.

Paraguay-Germany Trade Trend in Q2 2023

Paraguay Export Performance: Shipments to Germany

• Total Volume: $11.74M in Q2 2023.
• Growth Trend & Context:
  • YoY growth was negative in all months, with June showing the steepest decline (-12.06%).
  • No specific trade news or policy changes were reported to explain this trend.
• Key Volatility: April saw a sharp MoM surge (+55.59%), followed by a -16.74% drop in June.

Paraguay Import Performance: Sourcing from Germany

• Total Volume: $82.20M in Q2 2023.
• Growth Trend & Context:
  • Mixed YoY performance: May surged (+55.24%), but June plummeted (-39.57%).
  • No relevant news to contextualize the volatility.
• Key Volatility: May was the peak month (+26.05% MoM), while June recorded the steepest MoM drop (-40.84%).

Paraguay - Germany Trade Balance & Market Dynamics

• Net Position: Trade deficit of $70.46M (Imports $82.20M > Exports $11.74M).
• Relationship Status: Paraguay remains heavily dependent on German imports, with exports failing to offset the imbalance.

Paraguay Import Trend from Germany 2023 Q2 (Source: yTrade)**

Paraguay Export Trend to Germany 2023 Q2 (Source: yTrade)**

Get Historical Paraguay Germany Trade Records

Paraguay-Germany Top Trading Products in Q2 2023

Paraguay Export Profile: What Does Paraguay Sell to Germany

• Top Commodity: Rank #1 export is HS 02 (Meat and edible meat offal) with a 27.31% share.
• Demand Driver: Germany imports these primarily for its consumer market, indicating strong demand for Paraguayan agricultural products.
• Concentration: Trade is moderately concentrated, with the top two categories (HS 02 and HS 12) accounting for over 54% of total exports.

Paraguay Import Profile: What Does Paraguay Buy from Germany

• Top Commodity: Rank #1 import is HS 30 (Pharmaceutical products) with a 21.30% share.
• Dependency Nature: Paraguay relies on Germany for high-tech and industrial goods, particularly pharmaceuticals and machinery (HS 84, 87), reflecting a critical technology dependency.

Paraguay - Germany Trade Relationship Dynamics

• The Exchange Model: Resource-for-Tech Complementarity. Paraguay exports raw materials (meat, oilseeds) and imports high-value manufactured goods (pharmaceuticals, machinery).
• Value Chain Position: Germany holds the higher value-add position, supplying advanced industrial and medical products, while Paraguay provides agricultural commodities.

Import Analysis by Product: Germany to Paraguay (Source: yTrade)

Export Analysis by Product: Paraguay to Germany (Source: yTrade)

Check Detailed Paraguay-Germany Trade HS Code Breakdown

Future Outlook & Strategic Recommendations

Forecast

The Paraguay-Germany trade relationship is likely to face continued volatility in the near term, with Paraguay’s export decline to Germany (-12.06% YoY in June 2023) signaling weakening demand or competitive pressures. Germany’s import fluctuations (-39.57% YoY drop in June) suggest supply chain adjustments rather than a structural shift. Given Paraguay’s persistent trade deficit ($70.46M in Q2), exporters must address inefficiencies, while importers should prepare for potential supply disruptions. Without policy intervention or new trade incentives, the current resource-for-tech exchange model may struggle to rebalance.

Strategic Moves

• Diversify Export Markets: Paraguayan meat and oilseed exporters should target alternative EU buyers to reduce overreliance on Germany, mitigating demand shocks.
• Lock in Pharma Supply Contracts: Paraguayan importers must secure long-term agreements with German pharmaceutical suppliers (HS 30) to stabilize pricing amid volatile shipments.
• Invest in Agri-Tech Upgrades: Paraguayan producers should adopt German machinery (HS 84) to enhance meat and oilseed processing efficiency, boosting export competitiveness.

Frequently Asked Questions

How did Paraguay - Germany trade perform in 2023 Q2?

Paraguay's exports to Germany totaled $11.74M in Q2 2023, with negative YoY growth. Imports from Germany reached $82.20M, showing mixed YoY performance but a steep MoM drop in June (-40.84%).

What are the top exports from Paraguay to Germany?

Meat and edible meat offal (HS 02) is Paraguay's top export to Germany, accounting for 27.31% of shipments. Oilseeds (HS 12) follow, with the top two categories making up over 54% of exports.

What does Paraguay import from Germany?

Pharmaceutical products (HS 30) dominate Paraguay's imports from Germany, holding a 21.30% share. Machinery (HS 84, 87) also plays a significant role, reflecting Paraguay's reliance on German high-tech goods.

What is the trade balance between Paraguay and Germany?

Paraguay recorded a trade deficit of $70.46M with Germany in Q2 2023. The gap persists due to higher imports ($82.20M) outweighing exports ($11.74M), highlighting Paraguay's dependency on German industrial goods.