Economy Type
**Hydropower & Agro-Export Emerging Economy
(Emerging economies focused on hydropower and agricultural exports)**
Paraguay is classified as a Hydropower & Agro-Export Emerging Economy .
This is because the country is a global exporter of soybeans, beef, and agricultural products, and produces hydroelectric power exceeding domestic demand through the Itaipu Dam, jointly operated with Brazil, and the Yasireta Dam, jointly operated with Argentina. Abundant and relatively inexpensive clean electricity serves as a key foundation for transitioning the agriculture-centered economy into one centered on manufacturing, data centers, and green industries.
Although the Paraguayan economy is sensitive to agricultural climate and international raw material prices, it maintains a steady growth trend based on macroeconomic stability and private consumption and investment. The IMF projected real GDP growth at 5.3% in 2025 and 3.8% in 2026.
Country Definition
Paraguay is a landlocked South American country that is transforming into a manufacturing and logistics hub by exporting soybeans, beef, and hydroelectric power, while utilizing low-cost electricity, the Maquila Islands, and South American inland waterways.
Why It Matters
Although Paraguay is a landlocked country, it is connected to Atlantic ports via the Paraguay–Parana waterway. This waterway is a key component of the national supply chain, transporting grain, meat, fuel, and industrial products to ports in Argentina and Uruguay.
Furthermore, as a member of the Southern Common Market (MERCOSUR), it is institutionally connected to the markets of Brazil, Argentina, and Uruguay. Low electricity costs, a relatively simple tax system, and the Maquila export processing system are being utilized to attract industries such as automotive parts, textiles, plastics, electrical products, and agri-food processing.
Korea Perspective
For South Korea, Paraguay is a supplier of soybeans, meat, feed, and agricultural products, as well as a growth market capable of supplying agricultural machinery, automotive parts, power equipment, processing machinery, and digital infrastructure.
Korean companies can explore maquila production, agri-food processing, electric vehicle components, clean power-based industries, and inland logistics businesses targeting not only the Paraguayan domestic market but also the South American region, including Brazil and Argentina.
Key Keywords
- Hydropower
- Soybean & Beef
- Itaipú
- Paraguay–Paraná Waterway
- Maquila
- MERCOSUR
- Agro-Industry
- Green Manufacturing
- Landlocked Logistics
- Korea–South America Cooperation
Paraguay is a landlocked country located in central South America, sharing borders with Brazil, Argentina, and Bolivia. Population and industry are concentrated in the capital, Asunción, and the eastern region, while the western Chaco region has a large territory but a low population density.
According to IMF data, the population is estimated to be approximately 6.46 million in 2026. Spanish and Guarani are official languages, and Guarani culture and language have a significant influence on national identity.
The political system is a presidential system. The conservative Colorado Party has maintained political influence for a long time, and while policy continuity is relatively high, administrative efficiency, judicial trust, corruption, and the informal economy remain areas for improvement.
Diplomatically, it has deep economic ties with Brazil and Argentina and cooperates with the United States, the European Union, and Taiwan. As the only country in South America to maintain official diplomatic relations with Taiwan, Paraguay holds strategic significance amidst the diplomatic rivalry between Taiwan and China.
Key Features
- A landlocked country between Brazil, Argentina, and Bolivia
- Spanish-Guarani bilingual society
- Agriculture, livestock, and hydroelectric power-centered economy
- MERCOSUR member states
- Young population structure and low labor costs
- Concentration of population and industry in the eastern region
- Maintaining official diplomatic relations with Taiwan
Paraguay has grown based on relatively stable monetary and fiscal policies and agricultural and livestock exports. According to the World Bank, per capita income increased by an annual average of 2.4% from 2004 to 2024, recording a higher performance than many Latin American countries.
In 2025, the service sector, manufacturing, private consumption, and investment supported growth. The IMF projected that economic activity would remain robust in 2026 based on low prices, employment, and reform policies, but that the growth rate would moderate compared to the previous year.
The economic structure relies heavily on agriculture and hydropower, making it sensitive to droughts, floods, and the prices of soybeans, corn, and meat, as well as river levels. Informal employment, low productivity, disparities in education and healthcare, and inadequate road and logistics infrastructure also remain ongoing challenges.
Market characteristics
- Open economy centered on agriculture and hydropower
- Relatively low tax rates and production costs
- young workforce and growing middle class
- Reliance on imported consumer goods, machinery, and vehicles
- Consumer market centered on Asunción and Ciudad del Este
- The proportion of informal distribution and cash transactions is large.
- Economic fluctuations due to climate and agricultural product prices
MarketHub Point
Paraguay is in the process of transitioning from a simple agricultural nation to a manufacturing and processing nation utilizing low-cost clean electricity and maquila.
Paraguay's major industries are soybeans, corn, wheat, rice, and livestock farming. The World Bank assesses Paraguay as a major global exporter of agricultural and livestock products, such as soybeans and beef.
Soybeans can be linked from seed production to pressing, feed, and biofuel, but the current economy relies heavily on the export of raw materials and primary processed products. The beef industry is connected to overseas markets such as Brazil, Chile, Russia, and Taiwan, and competitiveness is determined by capabilities in slaughtering, freezing, quarantine, and traceability management.
에너지 부문의 핵심은 이타이푸와 야시레타 수력발전소이다. 파라과이는 생산한 수력전력 중 국내에서 사용하지 않는 물량을 브라질과 아르헨티나에 판매한다. 다만 전력 생산량에 비해 국내 송배전망과 산업용 전력 활용은 충분히 발달하지 못했다. 세계은행은 파라과이 에너지 수출의 대부분이 수력인 반면 수입에너지는 디젤 등 화석연료에 의존한다고 분석한다.
마킬라 산업은 해외에서 원부자재를 반입해 파라과이에서 가공·조립한 뒤 수출하는 구조이다. 자동차 배선, 전선, 섬유·의류, 플라스틱, 가죽, 식품과 생활용품 분야에서 활용되고 있으며 브라질 시장과 인접한 동부 국경지역이 주요 생산거점이다.
핵심 산업
- 대두·곡물 농업
- 쇠고기·축산
- 수력발전
- 농식품·사료 가공
- 자동차부품·전선
- 섬유·의류·가죽
- 플라스틱·포장재
- 건설·유통·금융
- 내륙수운·물류
핵심 자원
- 비옥한 농업용 토지
- 대두·옥수수·밀
- 소·육류
- 파라과이강·파라나강
- 대규모 수력전력
- 산림과 생물다양성
- 젊은 노동력
MarketHub Point
파라과이의 가장 큰 산업기회는 농산물과 전력을 그대로 수출하는 데서 벗어나 식품·소재·부품과 그린제조로 부가가치를 높이는 것이다.
파라과이의 주요 수출품은 대두, 대두박·대두유, 쇠고기, 전력, 옥수수, 쌀과 가죽이다. 수입품은 석유제품, 자동차, 기계, 전기전자제품, 화학제품, 의약품과 소비재가 중심이다.
WTO에 따르면 파라과이의 2024년 단순평균 최혜국 실행관세율은 8.6%였으며, 2025년 상품수입은 약 191억 달러로 집계되었다.
브라질과 아르헨티나는 최대 경제 파트너이다. 칠레는 쇠고기 등 농축산물의 주요 수출시장이고 중국은 주요 수입 공급국이다. 다만 파라과이는 대만과 외교관계를 유지하고 있어 중국과 공식 외교관계가 없다는 점이 무역·투자구조의 특수성이다.
내륙국인 파라과이는 파라과이–파라나 수로에 크게 의존한다. 강 수위가 낮아지면 선박 적재량과 운항효율이 감소하며, 수출운임과 농산물 경쟁력에 직접 영향을 준다. 세계은행은 수력발전, 수운과 농업 모두 라플라타강 유역의 안정적인 수자원에 의존한다고 평가한다.
주요 교역·협력국
- 브라질
- 아르헨티나
- 칠레
- 중국
- 미국
- 우루과이
- 대만
- 유럽연합
- 대한민국
공급망 특징
- 파라과이–파라나 내륙수운 중심
- 브라질·아르헨티나 항만 경유
- 농축산물과 전력 중심 수출
- 기계·연료·차량·전자제품 수입의존
- 강 수위와 기후에 민감한 물류
- MERCOSUR 역내시장 활용
- 국경무역과 재수출시장 발달
MarketHub Point
파라과이에서는 공장 생산비보다 내륙운송, 통관, 강 수위와 브라질·아르헨티나 항만까지의 물류구조가 최종 경쟁력을 결정한다.
파라과이 시장은 농업, 축산, 전력, 제조와 물류를 결합한 사업에 적합하다. 농기계, 관개, 종자, 비료, 스마트팜, 곡물저장과 선별·건조설비 수요가 존재하며 대규모 농업기업과 협동조합이 주요 고객이 된다.
축산 분야에서는 사료, 동물의약품, 도축·가공설비, 냉장·냉동, 포장과 추적시스템이 유망하다. 농축산물의 품질과 검역기준을 높이면 아시아·중동시장으로 수출을 확대할 수 있다.
수력전력을 활용한 자동차부품, 배터리 소재, 전선, 데이터센터, 그린수소와 저탄소 제조업도 중장기 기회이다. 다만 저렴한 발전비용이 실제 산업경쟁력으로 연결되려면 송배전망과 안정적 전력공급이 뒷받침되어야 한다.
마킬라 사업은 브라질 등 MERCOSUR 시장을 겨냥한 생산에 활용할 수 있지만 원산지 기준, 세제, 물류와 현지조달 조건을 사전에 검토해야 한다.
주요 기회
- 농기계·관개·스마트농업
- 곡물 저장·건조·가공
- 도축·육가공·콜드체인
- 자동차부품·전선·전자조립
- 태양광·송배전·변전설비
- 데이터센터·전력집약 산업
- 바이오연료·바이오매스
- 내륙항만·창고·물류시스템
- 의료기기·의약품
- 전자정부·핀테크·통신
주요 리스크
- 농업과 기후에 대한 높은 의존
- 내륙국 물류비와 항만 접근성
- 도로·송배전 인프라 부족
- 비공식경제와 조세회피
- 행정·통관절차의 불확실성
- 토지집중과 사회적 불평등
- 산림훼손·환경규제 강화
- 강 수위 저하와 가뭄
- 브라질·아르헨티나 경기 의존
파라과이 경제는 2026년에도 소비, 투자, 서비스와 제조업을 중심으로 성장할 전망이다. IMF는 2025년 5.3%의 높은 성장 이후 2026년 3.8% 수준으로 정상화될 것으로 전망하며, 중기적으로 거시경제 안정과 구조개혁이 성장을 지원할 것으로 평가한다.
향후 산업전환의 핵심은 수력전력의 국내 활용이다. 현재의 전력수출 중심 구조에서 벗어나 농산물 가공, 자동차부품, 데이터센터, 배터리, 전기화와 그린산업을 유치하면 고용과 부가가치를 확대할 수 있다.
농축산업에서는 생산량 확대보다 관개, 토양관리, 유전자원, 추적성, 산림보전과 저탄소 인증이 중요해질 것이다. 유럽연합 등 주요 시장의 산림·탄소규제가 강화되면 대두와 쇠고기 공급망의 원산지·환경정보 관리가 필수화될 수 있다.
기후변화는 가장 큰 구조적 위험이다. 농업, 수력발전과 내륙수운이 모두 강수량과 수자원에 의존해 가뭄이나 홍수가 동시에 생산·전력·물류에 영향을 줄 수 있다.
향후 주목할 변화
- 이타이푸 전력가격·운영 협상
- 수력전력의 국내 산업 활용
- 마킬라 제조업 확대
- 농축산물 환경·추적성 규제
- 파라과이–파라나 수로 개선
- 송배전·도로·내륙항만 투자
- 브라질·아르헨티나 경기변화
- 대만·중국 외교관계 변수
- 데이터센터·그린산업 유치
Market Position
Hydropower-Based Agro-Industrial Gateway
풍부한 농축산자원과 수력전력, 마킬라 제도와 내륙수운을 활용해 남미 농산물 수출국에서 제조·가공거점으로 전환하는 시장
Key Opportunities
- 대두·곡물·사료 공급망
- 쇠고기·육가공·콜드체인
- 농기계·스마트농업
- 수력 기반 그린제조
- 자동차부품·전기전자 조립
- 송배전·변전·에너지저장
- 내륙항만·물류 자동화
- 데이터센터·디지털 인프라
- 바이오연료·저탄소 농업
Recommended Strategy
Observe
대두·육류 가격, 강 수위, 이타이푸 협상, 마킬라 정책, 대만·중국 관계와 MERCOSUR 통상변화를 지속적으로 점검한다.
↓
Prepare
브라질·아르헨티나까지 포함한 권역시장 전략을 수립하고 농업기업, 마킬라 운영사, 물류기업과 현지 파트너십을 구축한다.
↓
Participate
Participation is phased in the fields of agricultural product processing, automotive parts, power facilities, smart agriculture, and inland logistics, starting with small-scale production and processing or joint demonstration projects.
Final Assessment
Based on its distinct comparative advantages in agricultural products and hydroelectric power, Paraguay is a country with high potential to grow into a low-cost manufacturing, processing, and logistics hub in South America.
Scope of investigation
This material was compiled by cross-referencing international organizations, the Paraguayan government and trade agencies, and publicly available economic and trade data.
international organizations
- International Monetary Fund
- World Bank
- World Trade Organization
- Inter-American Development Bank
- ECLAC
Paraguayan government and public institutions
- Government of Paraguay
- Ministry of Economy and Finance
- Central Bank of Paraguay
- Ministry of Industry and Commerce
- REDIEX
- National Customs Directorate
- Itaipú Binacional
- National Electricity Administration
Key verification data
- IMF Paraguay Sixth Review, 2026
- IMF Paraguay Country Data and Outlook
- World Bank Paraguay Overview
- World Bank Paraguay Country Economic Memorandum
- WTO Paraguay Trade and Tariff Profile
- WTO Paraguay Trade Policy Review 2024
- World Bank Paraguay Energy and Climate Data
- Public data related to Paraguay Maquila, investment, and logistics
Writing Verification
This document was written based on the following criteria.
- Applying the table of contents order of the WCI-001 Golden Template
- Maintain from 0. Country Summary to 8. References & Writing Verification
- Reflecting economic, trade, and industrial data for 2024–2026
- Priority use of data from international organizations and government agencies
- Reflecting national characteristics centered on agriculture, livestock, hydroelectric power, and inland logistics
- Application of South Korea's Manufacturing, Agriculture, and Energy Cooperation Perspective
- In fact, distinguish between forecasts and MarketHub's judgments.
- Maintain an appropriate amount tailored to national importance
Although Paraguay is a landlocked country, it is a major South American exporter of agricultural and livestock products, connected to the global market through soybeans, beef, hydroelectric power, and the Paraguay–Parana waterway.
The nation's greatest competitive advantages are agricultural land and affordable, clean electricity. However, it is difficult to sufficiently increase productivity, employment, and national income with a structure that relies solely on exporting soybeans, meat, and electricity as raw materials. A transition is necessary to utilize electricity domestically for agri-food processing, automotive parts, electrical and electronics, data centers, and green industries.
The geographical limitation of being a landlocked country poses the greatest supply chain risk to Paraguay's economy. Since logistics costs and delivery times vary depending on river levels, roads, customs clearance, and ports in neighboring countries, production and export must be designed as a single supply chain.
South Korea needs to evaluate Paraguay not merely as a supplier of agricultural products, but as a hub for cooperation in South America that combines agricultural technology, processing, energy, manufacturing, and logistics.
Agricultural machinery, meat processing and cold chain, automotive parts, power facilities, smart logistics, and digital infrastructure are sectors where Korean companies can demonstrate competitiveness. In particular, regional projects targeting MERCOSUR markets, such as Brazil, by leveraging the Maquila system and hydroelectric power are effective.
Final evaluation
Paraguay is an emerging market with high potential to develop into a hub for green manufacturing, agri-food processing, and inland logistics in South America, based on its agricultural and livestock resources, hydroelectric power, and maquila systems.