Paraguay faces challenging economic forecasts for 2025 due to drought impacting agricultural production and increasing prices. Key officials stress the need for innovative policies and improved irrigation. Collaboration with Thailand on industrial development, particularly in electric vehicles, is also highlighted.
Paraguay’s Economic Minister Carlos Fernández anticipates a challenging 2025 due to drought conditions affecting agricultural production, which will lead to rising prices. He emphasized the importance of innovative policies and reviewing institutional efforts under President Santiago Peña’s government, aimed at securing resources for key areas including health, education, security, and social transfers while optimizing public spending.
The Agriculture Ministry is focused on expanding irrigation systems to stabilize agricultural production. During a recent press conference, Fernández pointed out that drought conditions will negatively impact output from both large and medium-sized businesses, ultimately affecting consumer prices. He stated, “We will continue working in a difficult year, from the economic point of view, due to the issue of drought, although it has not been as bad as in previous years.”
Fernández also called for new policies to address evolving political, economic, and social conditions, urging for substantial action in response to these changes. Highlighting the need for improvements, he said, “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.” He acknowledged the continuous need for enhancing public spending to meet citizen demands.
Agriculture and Livestock Minister Carlos Giménez further outlined goals for greater irrigation to prevent production plateaus, stating the need for sustained agricultural output instead of temporary spikes requiring imports. In a related development, Paraguayan officials engaged with Thailand’s Industry Minister Akanat Promphan to boost cooperation in industrial development, particularly highlighting potential investments in the automotive sector, specifically electric vehicles (EVs). Discussions also centered on enhancing the food sector and processing industries to increase product value and exports.
The ongoing drought in Paraguay presents significant challenges for agricultural production, leading to predicted price increases. Economic and Agricultural Ministers are advocating for innovative policies and improved irrigation systems to ensure stability. Collaborative efforts with international partners further emphasize the potential for growth in key industries, aiming to enhance overall economic welfare and sustainability.
Original Source: en.mercopress.com
