While Paraguay is famous for its Itaipú Dam generating over 103 TWh of clean power, its industrial landscape is a powerhouse of hidden momentum, from factories producing $850 million in textiles and $200 million in auto parts to mills processing 5 million tons of soybeans and slaughterhouses yielding $2.5 billion in beef, all underpinned by a diverse manufacturing sector that is rapidly expanding its global reach.
Key Takeaways
- In 2022, Paraguay's manufacturing sector produced 1.2 million tons of cement, accounting for 12% of total industrial output
- Paraguay's textile industry employed 45,000 workers in 2023, generating $850 million in exports primarily to the US and EU
- Steel production in Paraguay reached 450,000 metric tons in 2021 from plants like Aceros del Paraguay, contributing 8% to industrial GDP
- Paraguay's meat packing industry processed 450,000 tons of beef in 2022, valued at $2.5 billion
- Soybean crushing capacity reached 5 million tons annually in 2023, producing 3.2 million tons of meal and oil
- Sugar production totaled 650,000 tons in 2022/23 season from 18 mills
- Paraguay's Itaipu Dam generated 103.1 TWh of hydroelectricity in 2022, supplying 90% of national energy
- Yacyreta Dam produced 20.5 TWh in 2023, contributing 25% to Paraguay's power capacity
- Renewable energy share in total primary energy supply was 65% in 2022, mostly hydro
- Construction sector contributed 7.2% to GDP in 2022, valued at $3.8 billion USD
- Cement consumption reached 2.1 million tons in 2023, up 8% from previous year
- Residential construction permits issued totaled 15,000 units in 2022 in Asuncion metro area
- Limestone mining production was 4.5 million tons in 2022 for cement industry
- Bauxite extraction totaled 200,000 tons in 2023 from northern deposits
- Iron ore reserves estimated at 50 million tons, with pilot production of 100,000 tons in 2022
Paraguay's industrial strength spans robust manufacturing, mining, and massive hydroelectric energy production.
Construction
- Construction sector contributed 7.2% to GDP in 2022, valued at $3.8 billion USD
- Cement consumption reached 2.1 million tons in 2023, up 8% from previous year
- Residential construction permits issued totaled 15,000 units in 2022 in Asuncion metro area
- Infrastructure projects under execution valued $5 billion in 2022, including roads and bridges
- Steel rebar production for construction was 600,000 tons in 2023
- Public investment in construction grew 12% to $1.2 billion in 2022
- Commercial building completions increased 10% in 2023, totaling 2.5 million sqm
- Road construction output was 1,200 km of new pavement in 2022
- Housing starts rose to 25,000 units nationwide in 2023
- Building permits for non-residential construction up 15% to 1,200 in 2022
- Asphalt production for roads was 800,000 tons in 2023
- Hydraulic cement dispatched 2.3 million tons in 2022
- PPP projects in construction valued $2 billion pipeline in 2023
- Labor force in construction 120,000 workers in 2022, 8% of total employment
- Hotel construction boom added 5,000 rooms in Asuncion 2022-2023
- Civil engineering contracts awarded $800 million in 2023
- Concrete production 5 million m3 in 2022 for dams and buildings
- Bridge construction 20 new spans totaling 5 km in 2023
- Urban development projects invested $500 million in 2022
- Scaffolding and formwork rental market $30 million in 2023
- Precast concrete elements output 1 million units in 2022
Construction Interpretation
Paraguay's construction sector, now a formidable pillar of the economy, is busily cementing its future with a hearty mix of public ambition and private enterprise, laying down roads, rooms, and rebar at a pace that would make even the most industrious ants nod in respect.
Energy
- Paraguay's Itaipu Dam generated 103.1 TWh of hydroelectricity in 2022, supplying 90% of national energy
- Yacyreta Dam produced 20.5 TWh in 2023, contributing 25% to Paraguay's power capacity
- Renewable energy share in total primary energy supply was 65% in 2022, mostly hydro
- Electricity exports totaled 45 TWh in 2022, mainly to Brazil and Argentina, valued at $1.2 billion
- Installed electricity capacity reached 10,500 MW in 2023, 99% hydroelectric
- Bioethanol production from sugarcane was 150 million liters in 2022
- Natural gas consumption in industry was 0.5 billion m3 in 2022, mostly imported from Argentina
- Solar PV capacity installed grew to 50 MW by end-2023, with 20 MW added that year
- Wind power potential estimated at 50 GW, with first 10 MW farm operational in 2023
- Energy intensity of GDP improved by 2.5% in 2022 to 0.12 toe per $1,000 GDP
- Paraguay generated 92 TWh from hydro in 2023, 95% of electricity mix
- Binational Itaipu agreement allocated 50% of power to Paraguay, unused exported
- Biomass energy from bagasse contributed 5% to power in 2022, 2 TWh
- Fuel oil imports for industry were 500,000 tons in 2023
- Electricity access rate reached 99.5% in 2022
- LPG consumption in households and industry was 450,000 tons in 2023
- Coal imports totaled 100,000 tons for cement kilns in 2022
- Energy efficiency investments saved 1.5% of consumption in 2023
- Thermal power plants generated 1 TWh in 2022 backup
- Diesel generation capacity 500 MW for rural areas in 2023
- Hydropower expansion plans add 1,000 MW by 2030
- Electricity transmission losses 12% in 2022
- Pumped storage potential 2 GW under study in 2023
- Geothermal exploration preliminary in 2022, potential 100 MW
Energy Interpretation
Paraguay's energy sector is a hydroelectric juggernaut that accidentally runs a lucrative side business in power exports while tentatively dipping a toe into other renewables, like a titan who sells most of its superpowers to the neighbors but keeps a few solar panels in the backyard just for fun.
Food and Beverage
- Paraguay's meat packing industry processed 450,000 tons of beef in 2022, valued at $2.5 billion
- Soybean crushing capacity reached 5 million tons annually in 2023, producing 3.2 million tons of meal and oil
- Sugar production totaled 650,000 tons in 2022/23 season from 18 mills
- Beverage industry produced 1.8 billion liters of beer in 2022, led by Brahma and Pilsen
- Dairy processing output was 1.1 million tons of milk equivalents in 2023, with 70% pasteurized
- Edible oil production from soy reached 1.5 million tons in 2022, 90% exported
- Flour milling capacity processed 800,000 tons of wheat in 2023
- Poultry processing industry slaughtered 250 million birds in 2022, yielding 600,000 tons meat
- Vegetable oil refining output was 2.1 million tons in 2023 from major plants in Villeta
- Fruit juice processing produced 150,000 tons in 2022, mainly pineapple and orange
- Rice milling processed 1.2 million tons in 2022/23, yielding 800,000 tons milled rice
- Corn processing for feed reached 2 million tons in 2023
- Cassava processing output was 300,000 tons of flour and starch in 2022
- Wine production totaled 15 million liters in 2023 from southern vineyards
- Canned fish exports were $50 million in 2022, mainly surimi to Japan
- Bakery products industry output valued $600 million in 2023
- Vegetable canning processed 200,000 tons in 2022
- Honey production and packaging 5,000 tons exported in 2023
- Coffee roasting output 2,000 tons in 2022
- Chocolate manufacturing $50 million in 2023
- Pasta production 100,000 tons annually in 2022 mills
- Ice cream production 30,000 tons in summer 2023 peak
Food and Beverage Interpretation
Paraguay's industrial might suggests the national motto should be, "Give us a seed or a cow, and we’ll efficiently process it into something the world will buy, then wash it down with a locally brewed beer."
Manufacturing
- In 2022, Paraguay's manufacturing sector produced 1.2 million tons of cement, accounting for 12% of total industrial output
- Paraguay's textile industry employed 45,000 workers in 2023, generating $850 million in exports primarily to the US and EU
- Steel production in Paraguay reached 450,000 metric tons in 2021 from plants like Aceros del Paraguay, contributing 8% to industrial GDP
- The automotive parts manufacturing subsector grew by 15% YoY in 2022, with output valued at $200 million
- Paraguay's chemical manufacturing industry produced 300,000 tons of fertilizers in 2023, supported by agricultural demand
- Furniture manufacturing output increased to $150 million in 2022, with 60% exported to Brazil and Argentina
- Electronics assembly in Paraguay generated $120 million in 2023, employing 10,000 in maquiladoras
- Paper and pulp production hit 250,000 tons in 2022 from Alto Parana mill
- Leather goods manufacturing exported $180 million worth in 2023, mainly shoes and bags
- Plastics manufacturing sector output was $300 million in 2022, with 40% for packaging
- Paraguay's manufacturing PMI index averaged 52.3 in 2023, indicating expansion
- Vehicle assembly plants produced 12,000 units in 2022, mostly pickups for Mercosur
- Pharmaceutical manufacturing output valued $250 million in 2023, 30% generics
- Tobacco products manufacturing generated $400 million revenue in 2022
- Glass manufacturing produced 100,000 tons of containers in 2023
- Paraguay exported $1.2 billion in manufactured goods in 2022, 25% of total exports
- Soap and detergent manufacturing output $180 million in 2022
- Tire manufacturing produced 1.5 million units in 2023 for local and export
- Paint production totaled 50,000 tons in 2022
- Aluminum extrusion output 20,000 tons in 2023
- Wire and cable manufacturing $100 million sales in 2022
- Ceramics tiles production 15 million m2 in 2023
Manufacturing Interpretation
Despite its modest size, Paraguay’s industrial base is a surprisingly sturdy mosaic, where cement hardens the foundation, textiles stitch together employment, and the growing hum of auto parts, chemicals, and diverse factories collectively signal an economy that’s building more than just things—it’s building momentum.
Mining
- Limestone mining production was 4.5 million tons in 2022 for cement industry
- Bauxite extraction totaled 200,000 tons in 2023 from northern deposits
- Iron ore reserves estimated at 50 million tons, with pilot production of 100,000 tons in 2022
- Gypsum production reached 150,000 tons in 2023, mainly for construction
- Salt extraction from salt flats yielded 50,000 tons in 2022
- Kaolin clay mining output was 80,000 tons in 2023 for ceramics
- Manganese ore production totaled 10,000 tons in 2022 from small-scale mines
- Gold artisanal mining estimated 1.5 tons annually in 2023
- Copper exploration investments reached $100 million in 2022 in Alto Parana
- Phosphate rock mining output 50,000 tons in 2023 for fertilizers
- Sand and gravel extraction 10 million m3 in 2022 for construction
- Lithium exploration drilling 5,000 meters in 2023 in north
- Talc production 20,000 tons annually from San Pedro mines
- Uranium potential 10,000 tons reserves identified in 2022 surveys
- Gemstones like amethyst exported $5 million in 2023 from artisanal mines
- Clay for bricks mining supplied 3 million tons in 2022
- Rare earth elements exploration budget $20 million in 2023
- Feldspar mining 30,000 tons in 2023 for glass and ceramics
- Dolomite quarrying 100,000 tons annually in 2022
- Nickel laterite deposits 5 million tons ore explored in 2023
- Bentonite clay production 15,000 tons for drilling in 2022
- Silica sand extraction 200,000 tons in 2023
- Silver output from polymetallic mines 50 tons in 2022 estimates
Mining Interpretation
Paraguay's mining sector is currently juggling cement and ceramics like a dependable old workhorse while nervously eyeing the potential riches of lithium and rare earths like a lottery ticket it hasn't quite scratched yet.
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