Paraguay - Germany Trade 2025 Q1: Deficit Widens

Key Market Takeaways: Paraguay - Germany Trade

The bilateral trade relationship between Paraguay and Germany reflects a persistent structural imbalance, with Paraguay heavily reliant on German imports while exports struggle to gain traction.

• Deficit-Driven Trade: Paraguay recorded an $80.01M trade deficit in Q1 2025, with imports ($90.20M) dwarfing exports ($9.19M). YoY export declines (-27.22% in Jan) highlight demand weakness.
• Resource-for-Tech Exchange: Paraguay - Germany trade statistics show a lopsided dynamic: raw materials (oil seeds, meat, wood) make up 76.38% of exports, while high-value German machinery and pharmaceuticals dominate imports.
• Asymmetric Interdependence: Germany holds the high-value position in this complementary but unequal partnership, with Paraguay locked into a low-processed commodity supplier role.

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

Paraguay-Germany Trade Trend in Q1 2025

Paraguay Export Performance: Shipments to Germany

• Total Volume: Q1 2025 exports to Germany totaled $9.19M.
• Growth Trend & Context:
  • YoY declines persisted across all months (-27.22% in Jan, -19.46% in Mar), signaling sustained demand contraction.
• Key Volatility: February saw a 92.78% MoM surge (likely order catch-up), but March reverted with a -30.8% drop.

Paraguay Import Performance: Sourcing from Germany

• Total Volume: Q1 2025 imports from Germany reached $90.20M, dwarfing exports.
• Growth Trend & Context:
  • Mixed YoY performance: +15.61% growth in Jan offset by -6.88% decline in Feb, suggesting uneven industrial demand.
• Key Volatility: February imports plunged -30.69% MoM, while March rebounded sharply (+37.21%).

Paraguay - Germany Trade Balance & Market Dynamics

• Net Position: Paraguay recorded a significant trade deficit of $80.01M (Imports: $90.20M vs. Exports: $9.19M).
• Relationship Status: Heavy reliance on German imports, with exports failing to offset. Structural trade imbalance persists.

Paraguay Import Trend from Germany 2025 Q1 (Source: yTrade)**

Paraguay Export Trend to Germany 2025 Q1 (Source: yTrade)**

Get Historical Paraguay Germany Trade Records

Paraguay-Germany Top Trading Products in Q1 2025

Paraguay Export Profile: What Does Paraguay Sell to Germany

• Top Commodity: Rank #1 export is HS Code 12 (Oil seeds and oleaginous fruits) with 33.80% share.
• Demand Driver: Germany uses these for industrial processing, likely in food production or biofuel.
• Concentration: Trade is highly concentrated, with the top 3 exports (HS 12, 02, 44) accounting for 76.38% of total exports.

Paraguay Import Profile: What Does Paraguay Buy from Germany

• Top Commodity: Rank #1 import is HS Code 30 (Pharmaceutical products) with 22.41% share.
• Dependency Nature: Critical technology dependency, as most imports are high-value machinery (HS 84, 85, 87) and pharmaceuticals.

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 (machinery, pharmaceuticals, vehicles).
• Value Chain Position: Germany holds the higher value-add position, dominating in complex manufactured goods, while Paraguay supplies low-processed 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 for Paraguay-Germany Trade

The Paraguay-Germany trade relationship is expected to remain volatile in the near term, with Paraguay’s export decline likely to persist due to weak German demand for raw commodities. However, Germany’s pharmaceutical and machinery exports to Paraguay may stabilize, supported by Paraguay’s reliance on high-value imports. Without structural shifts, the trade deficit will widen further, reinforcing Paraguay’s position as a resource supplier in this asymmetric exchange. Traders should brace for continued price fluctuations in key commodities like oil seeds (HS 12) and prepare for supply chain adjustments.

Strategic Moves for Traders & Policymakers

• Diversify Export Markets: Paraguay must reduce dependence on Germany by targeting emerging EU markets for its top commodities (HS 12, 02, 44) to mitigate demand shocks.
• Lock in Pharma Contracts: Importers of German pharmaceuticals (HS 30) should secure long-term supply agreements now to hedge against potential price surges driven by global health demand.
• Invest in Local Value-Add: Paraguay’s government and agribusinesses must prioritize processing capabilities (e.g., refining oil seeds) to capture higher margins and reduce reliance on low-value raw exports.

Frequently Asked Questions

How did Paraguay - Germany trade perform in 2025 Q1?

Paraguay's exports to Germany totaled $9.19M, with YoY declines across all months, while imports from Germany reached $90.20M, showing mixed YoY growth.

What are the top exports from Paraguay to Germany?

The top exports are Oil seeds and oleaginous fruits (HS Code 12), meat (HS Code 02), and wood (HS Code 44), accounting for 76.38% of total exports.

What does Paraguay import from Germany?

Paraguay primarily imports Pharmaceutical products (HS Code 30), machinery (HS Codes 84, 85), and vehicles (HS Code 87) from Germany.

What is the trade balance between Paraguay and Germany?

Paraguay recorded a significant trade deficit of $80.01M in Q1 2025, with imports from Germany far exceeding exports.