Paraguay - Germany Trade 2024 Q4: Deficit Widens

Key Market Takeaways: Paraguay - Germany Trade

The bilateral trade relationship between Paraguay and Germany is marked by growth and volatility, with Paraguay heavily dependent on German imports.

• Deficit Widens: Paraguay’s trade deficit with Germany hit 83.92M in Q4 2024 (imports: 98.84M > exports: 14.92M), driven by strong YoY growth in both flows but sharper import expansion.
• Resource-for-Tech Exchange: Paraguay - Germany trade statistics reveal a lopsided exchange—Paraguay ships oilseeds and meat (69.56% of exports), while Germany supplies machinery and pharmaceuticals (19.26% of imports).
• Asymmetric Interdependence: Germany holds the high-value position in this complementary relationship, with Paraguay reliant on its industrial inputs.

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

Paraguay-Germany Trade Trend in Q4 2024

Paraguay Export Performance: Shipments to Germany

• Total Volume: Exports to Germany totaled 14.92M in Q4 2024.
• Growth Trend & Context:
  • YoY growth was strong, peaking at 34.13% in December, indicating sustained demand.
  • MoM volatility was notable, with a 21.21% surge in October followed by consecutive declines (-5.01% in November, -8.3% in December).
• Key Volatility: October saw the highest MoM jump, while December posted the sharpest contraction.

Paraguay Import Performance: Sourcing from Germany

• Total Volume: Imports from Germany reached 98.84M in Q4 2024.
• Growth Trend & Context:
  • YoY growth was robust, hitting 44.09% in November, though December moderated to 15.12%.
  • MoM swings were pronounced: a 21.91% spike in November preceded a -12.79% drop in December.
• Key Volatility: November was the peak month, while December saw the steepest decline.

Paraguay - Germany Trade Balance & Market Dynamics

• Net Position: Paraguay ran a trade deficit of 83.92M (Imports: 98.84M > Exports: 14.92M).
• Relationship Status: Heavy dependence on German imports, with exports dwarfed by inbound shipments. The deficit widened significantly YoY.

Paraguay Import Trend from Germany 2024 Q4 (Source: yTrade)**

Paraguay Export Trend to Germany 2024 Q4 (Source: yTrade)**

Get Historical Paraguay Germany Trade Records

Paraguay-Germany Top Trading Products in Q4 2024

Paraguay Export Profile: What Does Paraguay Sell to Germany

• Top Commodity: HS Code 12 (Oilseeds, grains, seeds, fruits) dominates with 37.76% share.
• Demand Driver: Germany uses these for industrial processing (e.g., food production, biofuels).
• Concentration: Trade is highly concentrated, with the top 3 exports (HS 12, 02, 17) accounting for 69.56% of total exports.

Paraguay Import Profile: What Does Paraguay Buy from Germany

• Top Commodity: HS Code 84 (Nuclear reactors, boilers, machinery) leads at 19.26% share.
• Dependency Nature: Critical technology dependency, reflecting Paraguay’s need for industrial and infrastructure machinery.

Paraguay - Germany Trade Relationship Dynamics

• The Exchange Model: Resource-for-Tech Complementarity. Paraguay exports raw materials (oilseeds, meat) and imports high-value machinery and pharmaceuticals.
• Value Chain Position: Germany holds the higher value-add position, supplying advanced manufactured goods, while Paraguay provides primary 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 poised for continued growth in 2025, driven by Germany’s steady demand for Paraguayan agricultural commodities (HS 12, 02, 17) and Paraguay’s reliance on German machinery (HS 84). However, the widening trade deficit signals vulnerability to price volatility in primary goods. Expect moderate export growth (5-10% YoY) if commodity prices hold, but import costs may rise if machinery demand remains high. Traders should prepare for supply chain disruptions, given the MoM swings in both directions.

Strategic Moves

• Diversify Export Markets: Paraguay must reduce over-reliance on Germany by targeting other EU buyers for oilseeds and meat, mitigating deficit risks.
• Lock in Long-Term Contracts: German importers of Paraguayan commodities should secure fixed-price agreements to hedge against future price surges.
• Boost Value-Added Exports: Paraguayan producers should invest in processing (e.g., refined oils, packaged meat) to capture higher margins and reduce the tech-for-resources imbalance.

Frequently Asked Questions

How did Paraguay - Germany trade perform in 2024 Q4?

Paraguay's exports to Germany totaled 14.92M, with strong YoY growth (34.13% peak in December), while imports from Germany reached 98.84M, showing robust YoY growth (44.09% in November).

What are the top exports from Paraguay to Germany?

Oilseeds, grains, seeds, and fruits (HS Code 12) dominate Paraguay's exports to Germany, accounting for 37.76% of total shipments, followed by meat (HS 02) and sugar (HS 17).

What does Paraguay import from Germany?

Nuclear reactors, boilers, and machinery (HS Code 84) lead Paraguay's imports from Germany, making up 19.26% of total imports, reflecting a dependency on advanced industrial technology.

What is the trade balance between Paraguay and Germany?

Paraguay recorded a trade deficit of 83.92M with Germany in Q4 2024, as imports (98.84M) far exceeded exports (14.92M), widening the gap YoY.