structural:scholar_edition
Industry and manufacturing

The World Bank lists the top producing countries each year, based on the total value of production. By the 2019 list, Paraguay had the 79th most valuable industry in the world ($6.9 billion). The country was the seventh largest producer of soybean oil in the world in 2018.

The mineral industry of Paraguay produces about 25% of the country's gross domestic product (GDP) and employs about 31% of the labor force. Production of cement, iron ore, and steel occurs commonly throughout Paraguay's industrial sector. The growth of the industry was further fueled by the maquila industry, with large industrial complexes located in the eastern part of the country. Paraguay put in place many incentives aimed to attract industries to the country. One of them is the so-called "Maquila law" by which companies can relocate to Paraguay, enjoying minimal tax rates.

In the pharmaceutical industry, Paraguayan companies now meet 70% of domestic consumption and have begun to export drugs. Paraguay is quickly supplanting foreign suppliers in meeting the country's drug needs. Strong growth also is evident in the production of edible oils, garments, organic sugar, meat processing, and steel.

In 2003, manufacturing comprised 13.6% of the GDP and it employed about 11% of the working population in 2000. Paraguay's primary manufacturing focus is on food and beverages. Wood products, paper products, hides and furs, and non-metallic mineral products also contribute to manufacturing totals. Steady growth in the manufacturing GDP during the 1990s (1.2% annually) laid the foundation for 2002 and 2003, when the annual growth rate rose to 2.5%. Paraguay was ranked 98th in the Global Innovation Index in 2023.