Economic Activities in Paraguay: Primary, Secondary, Tertiary, and Quaternary

Paraguay, with a population of 6,929,153, is ranked 103rd in the world, just behind Libya. Located in South America, it covers a total area of 406,752 square kilometers, ranking 59th globally, just below Iraq.

As of 2024, Paraguay’s economic position is relatively stable, with a GDP of approximately $44.46 billion (World Bank), ranking among the smaller economies globally. Paraguay’s GDP per capita is approximately $6,416 as of 2024.

It trails behind Marshall Islands, with a GDP per capita of $6,225.18. Despite facing challenges, Paraguay continues to show resilience and potential for growth in various sectors of its economy.

Paraguay Economic Structure & Sector Analysis

• Primary activities: 17.9% of GDP.
• Secondary activities: 27.7% of GDP.
• Tertiary activities: 54.5% of GDP.

Primary Sector of Paraguay

With 42.31% of the country’s land dedicated to agriculture, Paraguay produces a variety of crops and animal products, including sugarcane, maize, soybeans, cassava, rice, wheat, milk, beef, oranges, and oil palm fruit.

Despite agriculture contributing 17.9% to the GDP, its significance lies in the diverse range of products that sustain the country’s agricultural sector, showcasing its importance to the economy.

Paraguay’s diverse geology provides rich natural resources such as hydropower, timber, iron ore, manganese, and limestone. These resources drive the economy, with hydropower leading energy production, timber supporting the construction industry, and minerals fueling industrial growth.

Secondary Sector of Paraguay

In Paraguay, key industrial products include sugar processing, cement, textiles, beverages, wood products, steel, base metals, and electric power.Manufactures in Paraguay’s total exports in 2023 accounted for 13.72%, indicating their relatively minor importance compared to other sectors.

Tertiary sector of Paraguay

The tertiary sector in Paraguay encompasses various services where individuals provide knowledge and time to enhance productivity and fulfill needs. This sector involves intangible goods such as advice, expertise, and attention, catering to both consumers and businesses. Key tertiary activities in Paraguay include healthcare and medical care, education and training, banking and finance, communication and information exchange, tourism and hospitality, and transportation and logistics.In particular, Paraguay’s tourism industry plays a crucial role in its economy, contributing substantially to its annual revenue. With an impressive 4,368,000 annual arrivals and a tourist-to-population ratio of 0.6442, the sector thrives. The Jesuit Missions of La Santísima Trinidad de Paraná and the Itaipu Dam stand out as popular tourist destinations, attracting visitors from around the globe.Another example of tertiary economic activity is the mobile cellular sector, with approximately 8.7 million subscriptions, equating to 128 per 100 inhabitants. This connectivity fosters technological growth, enabling innovation and digital services.

Military Activities and Economic Sectors of Paraguay

It uses resources from the primary sector, like minerals and fuel, for its needs. The secondary sector helps by making military equipment, such as weapons and vehicles. The military also provides services in the tertiary sector, like training and logistics. Research and development in the quaternary sector helps improve technology, while the quinary sector focuses on high-level decision-making and strategy.

As of 2024, Paraguay’s military expenditure is approximately 414 million US dollars, around 0.9% of the country’s GDP (SIPRI). The active military force has roughly 14,000 personnel.

Biggest company in Paraguay

Which is the biggest company in Paraguay? Grupo Vázquez S.A.E., a diversified Paraguayan conglomerate headquartered in Asunción, is among the country’s largest companies by revenue, with annual revenue of roughly $1.3 billion as of 2025. Its interests span agribusiness, livestock, retail, consumer goods, and financial investments, and it is listed on the Asunción Stock Exchange (Bolsa de Valores de Asunción).

International Trade of Paraguay

Import Activities of Paraguay

Paraguay’s import activities are crucial, with imports totaling $16.1 billion in 2023, accounting for 39.38% of the country’s GDP.Paraguay’s key import activities include acquiring refined petroleum, broadcasting equipment, cars, fertilizers, and pesticides. Its major partners are China (28%), Brazil (23%), US (11%), Argentina (8%), and Chile (3%).

Exports Activities of Paraguay

Paraguay’s export activities play a medium level of importance, accounting for 34.48% of its GDP in 2023, totaling $11,890,536,801.81. This demonstrates a significant contribution to the country’s economic growth.Paraguay’s export activities are diverse, with beef, electricity, soybeans, corn, and soybean meal being key commodities. The country’s top export partners include Brazil, Argentina, Chile, Russia, and the US, with Brazil being the largest at 36%.

Paraguay economy challenges in 2024

Paraguay, an upper middle-income South American economy, faces challenges in 2024. Hit by COVID-19 during recovery from the 2019 recession, the country struggles with corruption, money laundering, and income inequality. Despite being a global hydroelectricity leader, Paraguay’s highly agrarian economy is hindered by these issues.

Sources

• World Bank Data: Paraguay
• IMF: Paraguay
• CIA World Factbook: Paraguay
• UN Comtrade Plus: Trade Flow

Last updated: August 2026