Paraguay’s forestry sector is experiencing significant growth, with plantations now covering approximately 300,000 hectares and expanding by 50,000 hectares annually, a 15% increase. This is what Cristina Goralewski, president of the National Forestry Institute (Instituto Forestal Nacional or Infona), stated at her presentation at Paraguay Business Week 2025 in Ciudad del Este.
This rapid expansion is comparable to that seen in Uruguay, which has become a regional forestry powerhouse.
Rapid expansion of Paraguay’s forestry sector
Goralewski emphasised Paraguay’s substantial forestry potential, estimating over 5 million hectares suitable for development. This presents considerable opportunities for investment, industrial growth, and job creation. She indicated that the sector is well-positioned to become a key driver of economic diversification, contributing to both social wellbeing and environmental sustainability. Furthermore, she noted the consistent annual increase in global demand for forestry products.
Paraguay’s forestry exports between January and July of this year totalled US$53 million. Given the projected sector growth, the country aims to achieve annual forestry industry revenues of up to US$5 billion. To support this ambition, Paraguay has established a National Forestry Policy. This policy aims to establish Paraguay as a regional leader in green investments, balancing environmental conservation, economic development and employment generation.
National Forestry Policy
The National Forestry Policy, according to Goralewski, focuses on securing the provision of goods and services from both native forests and plantations. It also prioritises value addition, promoting competitiveness in domestic and international markets, and strengthening the resilience of forest ecosystems through integrated fire management, pest control, protection of watercourses, and biodiversity conservation.
The policy’s overall goal is sustainable growth in the forestry sector, ensuring its long-term economic and environmental viability.
