Exports of Manufacturing Sector Surge in 2024
The exports of manufactured goods reached USD 1.716 billion in 2024, marking a 14.1% increase compared to 2023. The maquiladora industry was the main driver of this growth, with its exports rising by 10.4% to USD 1.124 billion. Moreover, the sector attracted USD 103 million in investments and created 29,956 jobs, a 20% increase from 2023.
Performance of the Industrial Manufacturing Sector
According to the foreign trade report by the Central Bank of Paraguay (BCP), exports of industrial manufacturing reached USD 1.7169 billion by the end of 2024, representing a 14.1% rise compared to December 2023. These exports accounted for 1.8 percentage points of the total registered exports.
The growth was driven mainly by higher shipments of aluminum, auto parts (wires and cables), insecticides, fungicides, and herbicides. In terms of volume, exports of industrial manufacturing products totaled 567,200 tons, a 9.6% increase over the previous year.
The maquiladora industry accounted for 66% of the total exports of industrial origin. This figure, however, is slightly lower than in previous years when it consistently stood at 67% for three consecutive years.
Record Exports Under the Maquila Regime
Exports under the maquila regime grew by 10.4% in 2024 compared to 2023, reaching a record USD 1.1244 billion. This milestone is the highest since the inception of maquila exports. Of this total, USD 1.109 billion corresponded to consumer goods, while USD 32 million was for intangible services.
In December 2024 alone, the maquiladora industry exported USD 92 million, a 14% increase compared to the same month in 2023, when exports reached USD 80 million.
Key Export Products and Destinations
The leading products driving growth included aluminum and its derivatives (14%), auto parts (28%), textiles and garments (19%), and food products (15%). Collectively, these categories accounted for 83% of maquiladora industry exports in December.
The Mercosur region remained the primary destination for maquiladora products, receiving 76% of all shipments. Brazil dominated as the most significant market, accounting for 62.7% of exports. Argentina and the Netherlands followed with 11.1% and 7.4%, respectively. Other notable markets included the United States (4%), Chile (3%), and Bolivia and Uruguay (2% each).
Trade Balance and Investments in the Paraguayan Maquiladora Industry
The trade balance for the maquiladora sector remained positive in 2024, with exports exceeding imports by 94%. Total imports for the industry amounted to USD 571 million, a 15% increase compared to 2023, setting a new record. This contrasts with USD 1.109 billion in exports.
Investment in the Paraguayan maquiladora industry also surged, with USD 103 million accumulated in 2024, marking a 117% increase over the previous year, when investments totaled USD 48 million. This achievement represents the second-highest peak in maquiladora investments since 2014.
Market Expansion and New Programs
Over the past 12 months, maquiladora companies expanded their reach to 15 new destinations by exporting maquiladora products. Notable firms leading this expansion include Inpasa, Gelnex, Ball, and HercoSul.
Additionally, a record 36 new maquila programs were approved between January and December 2024. Of these, 91% of approved companies are located in Alto Paraná (48%), Central (28%), the Capital District (9%), and Amambay (6%).
Employment Growth and Gender Representation
The maquiladora industry generated 29,956 jobs in 2024, 4,928 more than in 2023, representing a 20% increase. In December alone, 599 new jobs were created compared to November 2024. Women occupied 45% of these jobs, showcasing the sector’s commitment to gender inclusivity.
Investment in the Paraguayan maquiladora industry boosted economic growth and demonstrated the sector’s resilience and potential for further expansion in global markets.
Conclusion
The remarkable growth in investment in the Paraguayan maquiladora industry in 2024 underscores its pivotal role in driving the country’s economic progress. The record-breaking USD 1.124 billion in maquila exports and the 117% surge in investments to USD 103 million highlight the sector’s resilience and adaptability in a competitive global market. This success is further amplified by the creation of nearly 30,000 jobs, reflecting a significant contribution to employment and a commitment to gender inclusivity, with women holding 45% of these positions.
The diversification of export products, including aluminum, auto parts, textiles, and food items, has strengthened Paraguay’s trade footprint, particularly within the Mercosur region, where Brazil remains the leading market. Additionally, the approval of 36 new maquila programs and the expansion into 15 new global destinations signify the industry’s forward momentum and capacity to attract international partnerships.
As Paraguay continues to leverage the maquiladora regime’s advantages, such as competitive labor costs, favorable trade policies, and strategic geographic positioning, the sector is poised for sustained growth. These advancements bolster Paraguay’s industrial base and position the maquiladora industry as a cornerstone of the nation’s economic strategy, fostering long-term development and strengthening its integration into global value chains.