Paraguay - Germany Trade 2023 Q4: Widening Deficit
Key Market Takeaways: Paraguay - Germany Trade
The bilateral trade relationship between Paraguay and Germany reflects a widening deficit driven by structural imbalances in Q4 2023.
- Economic Pulse: Paraguay posted a €70.44M trade deficit with Germany, as imports (€82.86M) dwarfed exports (€12.42M). Export growth slowed sharply YoY, while imports showed volatile demand swings.
- Exchange Structure: Paraguay - Germany trade statistics reveal a resource-for-tech dependency—Paraguay supplies oilseeds (43% of exports) while importing German pharmaceuticals (21%) and machinery.
- Strategic Interdependence: Highly complementary but unequal: Germany dominates high-value manufacturing, while Paraguay remains locked in a primary commodity exporter role.
This bilateral trade snapshot is based on verified customs data from the yTrade database.
Paraguay-Germany Trade Trend in Q4 2023
Paraguay Export Performance: Shipments to Germany
- Total Volume: €12.42M in Q4 2023.
- Growth Trend & Context: YoY growth decelerated sharply from +31.9% in October to +13.05% in December, signaling weakening demand or base effects. No trade policy shifts were reported to explain this trend.
- Key Volatility: December saw an 18.67% MoM drop, the steepest quarterly decline.
Paraguay Import Performance: Sourcing from Germany
- Total Volume: €82.86M in Q4 2023.
- Growth Trend & Context: YoY imports surged 40.18% in October but collapsed to +5.02% in November, suggesting inventory buildup or front-loaded orders. No supply disruptions were reported.
- Key Volatility: November recorded a 13.84% MoM contraction, the lowest monthly value.
Paraguay - Germany Trade Balance & Market Dynamics
- Net Position: €70.44M trade deficit with Germany, driven by heavy machinery or capital goods imports likely outpacing agricultural exports.
- Relationship Status: Paraguay remains structurally import-dependent on German industrial goods, with exports failing to offset the imbalance.
Paraguay Import Trend from Germany 2023 Q4 (Source: yTrade)**
| Month | Value | MoM | YoY |
|---|---|---|---|
| Oct | 29.57M | -12.8% | 40.18% |
| Nov | 25.48M | -13.84% | 5.02% |
| Dec | 27.81M | 9.16% | 29.29% |
| Total | 82.86M | - | - |
Paraguay Export Trend to Germany 2023 Q4 (Source: yTrade)**
| Month | Value | MoM | YoY |
|---|---|---|---|
| Oct | 4.76M | 2.77% | 31.9% |
| Nov | 4.22M | -11.27% | 22.25% |
| Dec | 3.44M | -18.67% | 13.05% |
| Total | 12.42M | - | - |
Get Historical Paraguay Germany Trade Records
Paraguay-Germany Top Trading Products in Q4 2023
Paraguay Export Profile: What Does Paraguay Sell to Germany
- Top Commodity: Oilseeds (HS Code 12) dominate exports, accounting for 43.16% of total shipments to Germany.
- Demand Driver: Germany relies on Paraguay for agricultural raw materials (oilseeds, meat, wood) to feed its industrial and consumer markets.
- Concentration: Trade is highly concentrated, with the top 3 commodities (oilseeds, meat, sugar) making up 68.99% of exports.
Paraguay Import Profile: What Does Paraguay Buy from Germany
- Top Commodity: Pharmaceuticals (HS Code 30) lead imports, representing 20.58% of Paraguay's purchases from Germany.
- Dependency Nature: Paraguay imports critical high-tech goods (pharmaceuticals, machinery, vehicles) from Germany, indicating a technology-driven dependency.
Paraguay - Germany Trade Relationship Dynamics
- The Exchange Model: Resource-for-Tech Complementarity—Paraguay supplies raw materials (agriculture) in exchange for German industrial and high-tech goods.
- Value Chain Position: Germany holds the higher value-add position, exporting complex manufactured goods, while Paraguay remains a supplier of primary commodities.
Import Analysis by Product: Germany to Paraguay (Source: yTrade)
| HS Code | Value | Percent |
|---|---|---|
| 30 | 17.05M | 20.58% |
| 87 | 13.46M | 16.25% |
| 84 | 13.24M | 15.98% |
| 85 | 10.85M | 13.10% |
| 31 | 5.59M | 6.75% |
| 38 | 3.93M | 4.74% |
| 90 | 2.78M | 3.36% |
| 39 | 2.28M | 2.76% |
| 29 | 1.08M | 1.31% |
| 33 | 966.71K | 1.17% |
Export Analysis by Product: Paraguay to Germany (Source: yTrade)
| HS Code | Value | Percent |
|---|---|---|
| 12 | 5.36M | 43.16% |
| 02 | 1.85M | 14.88% |
| 17 | 1.36M | 10.95% |
| 44 | 1.01M | 8.15% |
| 85 | 864.32K | 6.96% |
| 42 | 603.00K | 4.85% |
| 05 | 384.91K | 3.10% |
| 08 | 216.36K | 1.74% |
| 24 | 188.64K | 1.52% |
| 15 | 176.58K | 1.42% |
Check Detailed Paraguay-Germany Trade HS Code Breakdown
Future Outlook & Strategic Recommendations
Forecast
The Paraguay-Germany trade relationship is likely to face near-term volatility, with Paraguay’s export growth decelerating amid weakening German demand for agricultural commodities. However, Germany’s structural reliance on Paraguayan raw materials (oilseeds, meat) and Paraguay’s dependence on high-tech German imports (pharmaceuticals, machinery) will sustain trade volumes, albeit at moderated growth rates. Expect the trade deficit to persist unless Paraguay diversifies its export basket or secures preferential terms for value-added agro-exports.
Strategic Moves
- Lock in Agri-Export Contracts: Paraguayan exporters should negotiate long-term supply agreements with German buyers to stabilize prices amid demand fluctuations, leveraging Germany’s need for reliable raw material sourcing.
- Diversify Import Sources: Paraguayan importers must reduce dependency on German pharmaceuticals and machinery by exploring alternative suppliers in the EU or Asia to mitigate cost pressures.
- Push for Value-Added Exports: Paraguay’s trade ministry should incentivize agro-processing (e.g., refined oils, packaged meat) to capture higher margins and offset the structural trade deficit with Germany.
Frequently Asked Questions
How did Paraguay - Germany trade perform in 2023 Q4?
Paraguay's exports to Germany totaled €12.42M in Q4 2023, with YoY growth slowing sharply. Imports from Germany reached €82.86M, showing volatility but overall growth.
What are the top exports from Paraguay to Germany?
The top exports are oilseeds (43.16% of total), meat, and sugar, which together account for 68.99% of Paraguay's shipments to Germany.
What does Paraguay import from Germany?
Paraguay primarily imports pharmaceuticals (20.58% of total), machinery, and vehicles from Germany, reflecting a reliance on high-tech and industrial goods.
What is the trade balance between Paraguay and Germany?
Paraguay recorded a trade deficit of €70.44M with Germany in Q4 2023, driven by higher imports of industrial goods compared to agricultural exports.
Paraguay - Germany Trade 2023 Q2: Widening Deficit
Paraguay's trade deficit with Germany hit $70.46M in Q2 2023, driven by tech imports and agricultural exports. Explore Paraguay Germany trade trends and top trading products via yTrade data.
Paraguay - Germany Trade 2024 Whole Year: Persistent Deficit
Paraguay's trade deficit with Germany hits €306.4M in 2024, driven by agricultural exports and high-value German machinery. Explore Paraguay Germany trade trends and top trading products on yTrade.
