Economic Outlook for Paraguay Amidst Drought Challenges

Paraguay’s Economy Minister Carlos Fernández warns of rising produce prices due to drought affecting agriculture in 2025. The government aims for innovative policies and improved public spending while expanding irrigation systems to boost agricultural output. Strategic talks with Thailand could enhance future industrial collaboration.

Paraguay’s Economy Minister, Carlos Fernández, has forecast a challenging economic landscape for 2025 due to drought conditions affecting agricultural output, leading to increased produce prices. The government, under President Santiago Peña, aims to implement innovative policies and regularly assess institutional effectiveness to ensure adequate resources for health, education, security, and social services while enhancing public spending operations.

The Agriculture Ministry has set a goal to expand irrigation systems, aimed at maintaining consistent agricultural production. In a press conference with fellow cabinet members, Minister Fernández acknowledged that drought conditions are likely to impact both large and medium agricultural enterprises significantly, consequently raising prices for consumers.

Fernández noted, “On the part of the Ministry of Economy and Finance (MEF), we will continue working in a difficult year…this has a high impact, 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 emphasized the necessity for innovative policy proposals to enhance economic satisfaction among consumers.

He further emphasized the need for new policies, stating, “We need new policies, to start with new strength…political, economic and social conditions change over the years, and therefore, in a new situation we need new policies.” Minister Fernández assured that the MEF would prioritize funding for areas such as health, education, security, and social transfers, reiterating the need for improved public expenditure to meet citizen expectations.

Additionally, Agriculture and Livestock Minister Carlos Giménez indicated that the government aims to maximize the extent of irrigated land in Paraguay to avoid fluctuating production levels and dependence on imports. Separately, Paraguayan officials have recently met with Thailand’s Industry Minister, Akanat Promphan, to discuss enhancing cooperation in sectors like the automotive industry, particularly concerning electric vehicles (EVs) and the food sector, with a focus on promoting value-added processing industries to boost exports.

In conclusion, Paraguay faces significant agricultural challenges ahead due to ongoing drought conditions, which are anticipated to escalate produce prices. The government is committed to developing innovative agricultural policies and improving resource allocation across important sectors such as health, education, and security. Strategic partnerships, such as those with Thai authorities, may also help enhance industrial growth and agricultural resilience.

Original Source: en.mercopress.com