Paraguay - Singapore Trade 2024 Q2: Deficit-Driven Energy Dependence

Key Market Takeaways: Paraguay - Singapore Trade

The bilateral trade relationship between Paraguay and Singapore is marked by explosive growth and heavy import dependence in Q2 2024.

• Deficit-Driven Trade: Paraguay’s imports from Singapore ($106.59M) dwarf exports ($1.06M), creating a $105.53M deficit—driven by soaring energy purchases.
• Resource-for-Tech Exchange: Paraguay exports consumer goods (cosmetics, meat) to Singapore, while relying on it for 95% of mineral fuel imports, per bilateral trade data.
• Asymmetric Interdependence: Singapore holds strategic leverage as Paraguay’s critical energy supplier, with trade skewed toward high-value inputs.

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

Paraguay-Singapore Trade Trend in Q2 2024

Paraguay Export Performance: Shipments to Singapore

• Total Volume: Q2 2024 exports to Singapore totaled 1.06M.
• Growth Trend & Context:
  • Explosive YoY growth persisted across all months (394.24% in Apr, 130.29% in May, 374.57% in Jun), indicating a structural demand shift or base effect from low 2023 volumes.
  • Key Volatility: June saw a 62.29% MoM surge, the sharpest quarterly increase, suggesting accelerated shipments or seasonal demand.

Paraguay Import Performance: Sourcing from Singapore

• Total Volume: Q2 2024 imports from Singapore reached 106.59M.
• Growth Trend & Context:
  • YoY imports skyrocketed (125.99% in Apr, 819.31% in May, 424.07% in Jun), likely reflecting one-off capital goods purchases or inventory buildup.
  • Key Volatility: May’s imports peaked at 42.72M (31.61% MoM rise), followed by a 26.45% MoM drop in June, hinting at demand normalization.

Paraguay - Singapore Trade Balance & Market Dynamics

• Net Position: Paraguay recorded a trade deficit of 105.53M (Imports: 106.59M > Exports: 1.06M).
• Relationship Status: Heavy import dependence on Singapore, with exports negligible by comparison. The deficit suggests reliance on Singapore for high-value goods or machinery.

Paraguay Import Trend from Singapore 2024 Q2 (Source: yTrade)**

Paraguay Export Trend to Singapore 2024 Q2 (Source: yTrade)**

Get Historical Paraguay Singapore Trade Records

Paraguay-Singapore Top Trading Products in Q2 2024

Paraguay Export Profile: What Does Paraguay Sell to Singapore

• Top Commodity: Rank #1 export is HS Code 33 (Essential oils, perfumes, cosmetics), accounting for 44.20% of total exports to Singapore.
• Demand Driver: Singapore's consumer market drives demand for these goods, likely for retail and personal care sectors.
• Concentration: The trade is moderately concentrated, with the top two categories (HS Codes 33 and 02) making up 79.68% of exports.

Paraguay Import Profile: What Does Paraguay Buy from Singapore

• Top Commodity: Rank #1 import is HS Code 27 (Mineral fuels, oils), dominating with 95.14% of total imports from Singapore.
• Dependency Nature: This reflects energy security dependency, as Paraguay relies heavily on Singapore for refined petroleum products.

Paraguay - Singapore Trade Relationship Dynamics

• The Exchange Model: Resource-for-Tech Complementarity—Paraguay exports consumer goods (cosmetics, meat) and imports energy products (mineral fuels).
• Value Chain Position: Singapore holds the higher value-add position, supplying critical energy inputs, while Paraguay exports lower-value consumer goods.

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

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

Check Detailed Paraguay-Singapore Trade HS Code Breakdown

Future Outlook & Strategic Recommendations

Forecast

The Paraguay-Singapore trade relationship is poised for continued expansion in Q3 2024, driven by Singapore’s insatiable demand for Paraguayan consumer goods (notably essential oils and cosmetics) and Paraguay’s reliance on Singaporean energy imports. However, the widening trade deficit signals vulnerability—any disruption in mineral fuel supplies or a downturn in Singapore’s refining capacity could destabilize Paraguay’s import pipeline. Traders should anticipate volatile energy prices and opportunities for export diversification, especially as Paraguay’s cosmetic exports gain traction in Singapore’s premium retail markets.

Strategic Moves

• Lock in Energy Supply Contracts: Paraguayan importers must secure long-term agreements with Singaporean fuel suppliers to mitigate price volatility and ensure stable energy inflows.
• Expand Cosmetic Export Capacity: Paraguayan exporters should aggressively target Singapore’s high-margin personal care sector, leveraging e-commerce platforms to bypass traditional distribution bottlenecks.
• Diversify Import Sources: Reduce overreliance on Singapore by exploring alternative suppliers for mineral fuels in Southeast Asia (e.g., Malaysia, Indonesia) to hedge against supply chain shocks.

Bottom line: Paraguay’s trade deficit with Singapore is unsustainable—tactical diversification and export promotion are non-negotiable.

Frequently Asked Questions

How did Paraguay - Singapore trade perform in 2024 Q2?

Paraguay's exports to Singapore grew explosively (394.24% YoY in April), while imports surged 125.99% YoY. Total trade volume reached 1.06M (exports) and 106.59M (imports).

What are the top exports from Paraguay to Singapore?

Essential oils, perfumes, and cosmetics (HS Code 33) dominate, making up 44.20% of Paraguay's exports to Singapore.

What does Paraguay import from Singapore?

Mineral fuels and oils (HS Code 27) account for 95.14% of Paraguay's imports from Singapore, reflecting energy security dependency.

What is the trade balance between Paraguay and Singapore?

Paraguay recorded a trade deficit of 105.53M, driven by heavy reliance on Singapore for high-value goods like mineral fuels.