Paraguay - Germany Trade 2024 Q1: Deficit-Driven Exchange

Key Market Takeaways: Paraguay - Germany Trade

The bilateral trade relationship between Paraguay and Germany shows mixed growth with heavy import dependency in Q1 2024.

• Deficit-Driven Trade: Paraguay posted a 70.03M trade deficit (80.05M imports vs. 10.02M exports), with volatile YoY swings—exports surged (+41.06% in March) while imports declined (-21.86% in February).
• Resource-for-Tech Exchange: Paraguay - Germany trade statistics reveal a lopsided structure: raw materials (oil seeds, meat) make up 54.59% of exports, while high-value pharmaceuticals (23.82%) and machinery dominate imports.
• Asymmetric Interdependence: Germany holds the value-add advantage, with Paraguay reliant on critical tech imports and limited export diversification.

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

Paraguay-Germany Trade Trend in Q1 2024

Paraguay Export Performance: Shipments to Germany

• Total Volume: Q1 2024 exports to Germany totaled 10.02M.
• Growth Trend & Context:
  • Exports showed mixed YoY growth: +21.45% in January, +9.28% in February, and a sharp +41.06% in March.
  • No specific trade news or policies were cited to explain these fluctuations.
• Key Volatility: February saw a 17.54% MoM surge, while January recorded a -13.76% MoM drop.

Paraguay Import Performance: Sourcing from Germany

• Total Volume: Q1 2024 imports from Germany reached 80.05M.
• Growth Trend & Context:
  • Imports declined YoY: -21.86% in February and -18.75% in March, despite a +30.33% spike in January.
  • No relevant news or policies were provided to contextualize the downturn.
• Key Volatility: January was the peak month (29.50M), followed by a -13.95% MoM contraction in February.

Paraguay - Germany Trade Balance & Market Dynamics

• Net Position: Paraguay recorded a trade deficit of 70.03M (Imports: 80.05M > Exports: 10.02M).
• Relationship Status: Heavily dependent on imports from Germany, with exports failing to offset the imbalance.

Paraguay Import Trend from Germany 2024 Q1 (Source: yTrade)**

Paraguay Export Trend to Germany 2024 Q1 (Source: yTrade)**

Get Historical Paraguay Germany Trade Records

Paraguay-Germany Top Trading Products in Q1 2024

Paraguay Export Profile: What Does Paraguay Sell to Germany

• Top Commodity: Rank #1 export is HS Code 12 (Oil seeds and oleaginous fruits) with 25.51% share.
• Demand Driver: Germany uses these for industrial processing, likely in food production or biofuels.
• Concentration: Trade is moderately concentrated, with the top 3 exports (HS 12, 02, 44) accounting for 54.59% of total exports.

Paraguay Import Profile: What Does Paraguay Buy from Germany

• Top Commodity: Rank #1 import is HS Code 30 (Pharmaceutical products) with 23.82% share.
• Dependency Nature: Critical technology dependency, as imports are dominated by high-value pharmaceuticals and machinery (HS 84, 87).

Paraguay - Germany Trade Relationship Dynamics

• The Exchange Model: Resource-for-Tech Complementarity. Paraguay exports raw materials (oil seeds, meat, wood) while importing high-tech goods (pharmaceuticals, machinery, vehicles).
• Value Chain Position: Germany holds the higher value-add position, with complex manufactured goods dominating imports. Paraguay’s exports are primarily low-value raw materials.

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 poised for continued volatility in Q2 2024, with Paraguay’s export growth likely to remain uneven due to fluctuating demand for raw materials like oil seeds (HS 12). Germany’s import decline suggests a potential cooling in high-tech purchases, which could widen Paraguay’s trade deficit further. However, the resource-for-tech complementarity ensures baseline stability—Paraguay’s agricultural exports will remain critical to Germany’s industrial supply chains, while German pharmaceuticals and machinery retain irreplaceable value for Paraguay. Traders should prepare for price sensitivity in raw materials and potential supply chain delays.

Strategic Moves

• Diversify Export Markets: Paraguay must reduce reliance on Germany by targeting other EU buyers for oil seeds and meat (HS 02, 12) to mitigate deficit risks.
• Lock In Pharma Contracts: Importers should secure long-term agreements for German pharmaceuticals (HS 30) to hedge against price surges and supply shortages.
• Upgrade Value Chains: Paraguayan exporters should invest in preliminary processing (e.g., refined oils instead of raw seeds) to capture higher margins and reduce Germany’s value-add dominance.

Frequently Asked Questions

How did Paraguay - Germany trade perform in 2024 Q1?

Paraguay's exports to Germany grew +21.45% YoY in January but imports declined -21.86% YoY in February. Total trade volume was 10.02M (exports) vs. 80.05M (imports).

What are the top exports from Paraguay to Germany?

Top exports: Oil seeds (HS 12, 25.51% share), meat (HS 02), and wood (HS 44), accounting for 54.59% of total exports.

What does Paraguay import from Germany?

Key imports: Pharmaceuticals (HS 30, 23.82% share), machinery (HS 84), and vehicles (HS 87), reflecting high-tech dependency.

What is the trade balance between Paraguay and Germany?

Paraguay had a 70.03M trade deficit (Imports: 80.05M > Exports: 10.02M), showing heavy reliance on German high-tech goods.