Paraguay

The report examines the economic landscape of Paraguay and provides information on major monetary indicators, foreign trade and government finance. The economy expanded in real terms in 2023, driven by exports, private consumption, government…

The beauty and personal care market sustained little growth in either value or volume terms in 2023. The market suffered from increased smuggling from Argentina which negatively affected sales of hair care and oral care in particular. Despite…

Tissue and hygiene sales in 2023 were mainly characterised by the normalisation of society with consumers returning to their places of work and education and the resumption of pre-pandemic habits. Categories related to consumption at home, such as…

In 2023 the main influence on home care sales was the full resumption of society in the wake of the pandemic and less time spent at home. In general, categories related to disinfection and surface care posted the steepest declines as the pandemic…

Natural increase will drive rapid population expansion in Paraguay in 2021-2040. Ageing will quicken; however, Paraguay will remain relatively young in terms of its median age. The country has the potential to benefit from a demographic dividend as…

A weak rule of law and endemic corruption hamper economic freedom in Paraguay, although the tax burden remains very low and government finances are sustainable. In the medium term, the economy will outperform the regional average and inflation has…

Thanks to higher than expected GDP growth, sales of soft drinks achieved solid growth in 2023, with above average temperatures also favouring demand for soft drinks over hot drinks. Carbonates and bottled water remain the most popular categories…

Hot drinks sales experienced modest growth in 2023 with the category resuming pre-pandemic consumption patterns. Other hot drinks, specifically the national drink yerba mate which comprises the majority of industry sales also returned to growth. The…

Volume sales of staple foods are expected to grow in 2023. Moderate inflation rates after a challenging 2022 will play a key role in the recovery of categories such as baked goods as well as rice, pasta and noodles. However, breakfast cereals is…

While value sales rose of cooking ingredients and meals rose in 2023, volume sales contracted. High inflation forced consumers to reduce the frequency of purchases. Nevertheless, while poverty and income inequality characterise Paraguay’s small…