Drought Impacting Produce Prices in Paraguay: Economic Outlook for 2025

Due to ongoing drought, Paraguay’s Economy Minister forecasts increased produce prices in 2025. Emphasizing the necessity for innovative policies and enhanced irrigation systems, the government aims to support essential services while addressing farmers’ needs. Collaborations in the automotive sector with Thailand were also discussed to boost industrial development and exports.

Paraguay is anticipated to face economic challenges in 2025 due to drought, which is expected to elevate produce prices significantly. Carlos Fernández, the Economy Minister, emphasized the necessity for innovative policies and institutional reviews to help the government deliver essential resources for health, education, security, and social transfers while enhancing public spending.
The Agriculture Ministry aims to increase irrigation systems to secure sustainable agricultural production; this strategy is fundamental in maintaining continuous output in the face of adverse conditions. During a recent press conference, Fernández noted that drought would adversely affect production across large and medium-sized businesses, eventually impacting consumer prices.
Fernández stated, “On the part of the Ministry of Economy and Finance (MEF), we will continue working in a difficult year, from the economic point of view, due to the issue of drought… not only on large producers, but on medium-sized producers, and in terms of the consumer, it has its impact in terms of prices.” He advocated for innovative proposals to achieve greater consumer satisfaction and stressed the need for fresh policies to adapt to changing political, economic, and social environments.
“We have the obligation to do more. That is why we are in office, otherwise, we should go home if we are not able to improve the welfare of the people,” Fernández asserted while acknowledging the continuous need for improved public spending to meet citizen demands.
Moreover, Agriculture and Livestock Minister Carlos Giménez expressed the government’s objective to substantially enhance irrigation land within Paraguay, aiming to eliminate the cyclical patterns of production stagnation that require subsequent imports. In another initiative, Paraguayan officials engaged with Thailand’s Industry Minister, Akanat Promphan, to explore collaborative efforts in the automotive industry, particularly in electric vehicles, while also promoting the food sector and processing industries for improved exports.

In summary, Paraguay’s Economy Minister has highlighted the adverse effects of drought on agricultural production and is advocating for innovative economic policies to cope with the resulting price increases. The government is focused on enhancing irrigation systems to ensure sustainable crop outputs, and also aims to strengthen international partnerships to stimulate industrial and export growth, particularly in the automotive and food processing sectors.

Original Source: en.mercopress.com