Paraguay’s Economy Minister forecasts a tough 2025 due to drought impacting agriculture and prices. The government is focusing on innovative policies, increased irrigation, and strengthening industrial cooperation, particularly in the automotive sector, to enhance economic resilience and public welfare.
Paraguay’s Economy Minister, Carlos Fernández, has forecasted challenges for the year 2025, primarily due to ongoing drought conditions that are adversely affecting agricultural production and consequently driving up prices. He stressed the importance of innovative policies and consistent institutional reviews as the government, under President Santiago Peña, seeks to ensure adequate resources for essential services such as health, education, security, and social support, while also aiming to enhance public spending efficiency.
The Agriculture Ministry aims to boost production through improved irrigation systems to ensure a steady agricultural output. During a cabinet press conference, Fernández acknowledged that the drought is expected to impact both large and medium-sized agricultural enterprises, which will reflect in the pricing of consumer goods.
Fernández remarked that the Ministry of Economy and Finance (MEF) would strive to navigate the difficulties presented by drought, noting that even if the situation is not as dire as in previous years, it significantly impacts producers and consumers alike. He emphasized the need for innovative proposals to enhance economic satisfaction among consumers and the broader public.
Fernández called for the introduction of new policies and a reevaluation of existing measures, highlighting the necessity of adapting to evolving political, economic, and social conditions. He mentioned that the President has mandated the administration to approach issues with renewed vigor, assuring that priority sectors such as health, education, and social welfare would receive necessary funding to improve citizen well-being.
Carlos Giménez, the Agriculture and Livestock Minister, also expressed aspirations for Paraguay to maximize the amount of irrigated land to avoid periods of stagnation in agricultural production, thus reducing reliance on imports during off-seasons. In a recent initiative, Paraguayan officials met with Thailand’s Industry Minister, Akanat Promphan, to enhance collaboration in industrial development, particularly regarding investment opportunities in the automotive sector, including electric vehicles (EVs). They highlighted the food sector’s potential, emphasizing the importance of developing processing industries to increase product value and bolster exports across regions.
In summary, Paraguay faces significant economic challenges due to drought conditions anticipated to elevate produce prices in 2025. The government, led by President Santiago Peña and Economy Minister Carlos Fernández, is focusing on innovative policies and improved irrigation initiatives. Additionally, there is an emphasis on promoting industrial development and enhancing agricultural exports through value-added processing. The commitment to prioritize public welfare remains central to the administration’s strategy amidst these adversities.
Original Source: en.mercopress.com
