Paraguay’s natural resources are defined by vast freshwater reserves, productive agricultural soils, and exceptional hydroelectric capacity. The country holds 337 km³ of internal renewable water reserves (ranking 26th globally) and generates over 63,700 GWh of clean electricity—principally from the binational Itaipu dam on the Paraná River. What are the key natural resources of Paraguay, and how does resource management balance export agriculture with Gran Chaco conservation?
Paraguay is a landlocked South American country endowed with a remarkable concentration of natural resources. Geographically divided by the Paraguay River into two distinct landscapes—the lush, fertile eastern hills and plains and the semi-arid, vast alluvial plains of the Gran Chaco to the west—the country possesses immense hydrological, agricultural, and biological wealth. Within the continental framework of Latin America’s natural resources, Paraguay stands out as a clean energy exporter and agricultural powerhouse.
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The nation’s most notable natural assets include its strategic freshwater resources, fertile arable soils suited for mechanized grain cultivation, extensive native forests, and world-class river gradients that drive the Itaipú and Yacyretá hydroelectric complexes. To see how Paraguay compares globally, explore our international benchmark on natural resources by country.
What is Paraguay’s global standing in water reserves and energy production? What minerals and soil types characterize its territory? How are its unique bird, mammal, reptile, fish, and plant species protected amidst expanding agricultural frontiers? The following sections analyze each domain through official 2026 data.
Natural Resources
Natural resources are materials or energy sources provided or found in the natural environment of the Earth that are useful to human society. All goods manufactured across modern civilization originate ultimately from natural resources, as detailed in our guide to the types of natural resources.
- Renewable resources: can be restored through natural biogeochemical cycles faster than their rate of consumption. Examples include solar radiation, wind currents, hydroelectric power, freshwater when sustainably managed, and biological flora and fauna (see renewable vs non-renewable resources).
- Non-renewable resources: once extracted and consumed, they cannot regenerate within human timescales and are permanently depleted. Examples include fossil hydrocarbons, metallic ores, and non-metallic minerals.
Examples of the Main Natural Resources of Paraguay
Production and Land Use Across Paraguay
Natural resource rents, fisheries, agricultural land use, and conservation status.
| Natural resource rents | 1.3% of GDP2021 |
|---|---|
| Capture fisheries | 17,260 t annually2024 |
| Agricultural land | 54.1% of land area2023 |
| Arable land | 11.5% of land area2023 |
| Forest cover | 38.5% of land area2023 |
| Protected terrestrial area | 14.9% of land area2025 |
Map of Natural Resources in Paraguay by Region
Paraguay is divided into two contrasting natural regions—the Eastern Region and the Western Region (Gran Chaco)—each with distinct ecological endowments.
| Resource | Reserves / Production | Source |
|---|---|---|
| Freshwater | 337 km³ (2020); 26th worldwide | FAO |
| Average precipitation | 1,130 mm/year; 70th worldwide | World Bank |
| Forest cover | 38.54% of land area (152,643 km²); 2023 | World Bank 2023 |
Water Resources of Paraguay
Paraguay possessed internal renewable freshwater reserves of 337 km³ in 2020, placing it 26th globally according to FAO AQUASTAT. This enormous water resource endowment is fed by the mighty Paraná River and Paraguay River systems, forming part of the Río de la Plata drainage basin—the second-largest catchment area in South America.
In addition to surface river flows, the subsoil of eastern Paraguay overlies the Guaraní Aquifer, one of the largest continuous continental groundwater reservoirs in the world, ensuring long-term municipal security and strategic freshwater reserves.
Average Precipitation and Soils of Paraguay
Paraguay receives an average annual precipitation of 1,130 mm, ranking 70th globally as of 2020. However, rainfall distribution is sharply asymmetrical: the Eastern Region receives between 1,400 mm and 1,800 mm annually, supporting deep, fertile, reddish oxisols and alfisols ideal for intensive grain production. In contrast, the Western Region (Chaco) receives less than 600 mm to 900 mm annually, where heavier alluvial and clay soils predominate, suited primarily for drought-tolerant silvopastoral livestock systems.
Renewable Electricity Generation and Hydropower in Paraguay
Paraguay is globally unique in generating 100% of its domestic electricity from clean, renewable hydroelectric sources, totaling 63,771 GWh in reported national generation. The country’s premier energy asset is the binational Itaipú Dam (14,000 MW installed capacity, co-owned with Brazil), complemented by the binational Yacyretá Dam (3,200 MW, co-owned with Argentina) and the domestic Acaray hydroelectric dam (210 MW). This places Paraguay among the top net electricity exporters worldwide within global energy resources trade.
Forest Resources of Paraguay
Paraguay possesses substantial and ecologically varied forest resources distributed across two contrasting ecological biomes: the semi-arid thorn forests and savannas of the Gran Chaco to the west, and the highly biodiverse Upper Paraná Atlantic Forest (BAAPA) to the east.
In 2023, national forest cover stood at 38.54% of the land area, encompassing 152,643 km² according to World Bank data. Hardwood species such as quebracho (Schinopsis balansae), lapacho, and cedar historically sustained tannin extraction and timber industries, though deforestation has increasingly constrained native stands.
Environmental Performance and Natural Resource Protection in Paraguay
According to the Environmental Performance Index (EPI 2024, Yale University), Paraguay recorded an overall score of 39.5, ranking 133rd out of 180 evaluated nations. Officially protected terrestrial areas cover 14.9% of total territory, though conservation effectiveness varies significantly between public national parks and private nature reserves.
National Parks of Paraguay: The Protected Wealth of Natural Resources
Biodiversity: Animal and Plant Resources of Paraguay
Birds of Paraguay
Paraguay harbors a rich diversity of avifauna, with 691 bird species documented in 2018, ranking 40th worldwide. Among these, 31 species are cataloged as globally threatened due to habitat conversion in the Atlantic Forest and Chaco biomes.
The bare-throated bellbird (Procnias nudicollis, known locally as the pájaro campana) represents the official national bird and an emblem of Atlantic Forest canopy conservation.
Fish and Amphibians of Paraguay
Paraguay supports 85 amphibian species, including the Argentine horned frog (Ceratophrys ornata). In freshwater river basins, the country registers over 230 fish species, where apex predatory species like the golden dorado (Salminus brasiliensis), surubí catfish, and pacú anchor commercial and artisanal river fisheries.
Mammals of Paraguay
Paraguayan ecosystems sustain 165 mammal species, of which 10 face serious conservation threats. Notable species include the giant armadillo (Priodontes maximus, tatú carreta), the Chacoan peccary (Catagonus wagneri, taguá—rediscovered alive in the 1970s), the jaguar, and the maned wolf.
Reptiles of Paraguay
Paraguay documents 189 reptile species recorded in 2019, ranking 47th globally. The broad-snouted caiman (Caiman latirostris, yacaré overo) and the yacare caiman represent key wetland reptiles sustaining freshwater food webs across the Pantanal and Chaco marshes.
Plants of Paraguay
Paraguay features an extensive vascular flora, with 5,296 plant species documented in 2020, placing it 36th globally. The pink lapacho (Handroanthus heptaphyllus, tajy) is celebrated as the official national tree, renowned for its dense, durable hardwood and vibrant seasonal flowering.
Organizations Protecting or Researching Natural Resources in Paraguay
- WWF Paraguay – Protects biodiversity, advocates for Atlantic Forest restoration, and promotes sustainable resource use.
- Tierra Viva – Defends indigenous land rights and advocates for Chaco woodland conservation and community agroecology.
- Itaipú Binacional – Generates clean hydroelectricity while managing biological reserves and reforestation programs across the reservoir basin.
- Guyra Paraguay – Premier conservation organization monitoring bird populations, satellite deforestation rates, and key biodiversity areas.
- Fundación Paraguaya – Promotes environmental education, poverty elimination, and sustainable rural farming models.
Paraguay’s natural resource profile is distinguished by a rare structural pairing: world-scale hydroelectric energy generation alongside a massive export agriculture model. The Itaipú Dam, one of the most productive engineering works on Earth, earned a Guinness World Record in 2024 for the highest cumulative hydroelectric output in history, surpassing 3,051,799 GWh generated since 1984 (Agencia IP, 2025).
Hydroelectricity: Itaipú Powers the Nation and Exports the Surplus
Itaipú generated 67,088 GWh in 2024, supplying 20,383 GWh directly to the Paraguayan grid—a 4.5% increase over 2023 and equivalent to nearly three years of total domestic demand (Agencia IP, 2025). Because Paraguay consumes only a portion of its treaty entitlement, it exports substantial electricity surpluses to Brazil and Argentina.
Agro-Exports: Soybeans Lead Foreign Currency Earnings
Soybeans represent Paraguay’s premier agricultural export resource. In 2023, Paraguay exported US$3.423 billion worth of raw soybeans, with neighboring Argentina serving as the destination for roughly 93% of that value for crushing and re-export (World Bank WITS, 2023). This high-yield cultivation firmly places Paraguay among the top five soybean exporters globally.
The Forest Cost: Deforestation Across the Gran Chaco
Agricultural expansion exerts severe pressure on native ecosystems. Between 2001 and 2024, Paraguay lost 7,218,927 hectares of tree cover—representing roughly 29.7% of the total forest canopy present in the year 2000—with large-scale cattle ranching across the semi-arid Chaco acting as the primary driver (Global Forest Watch, 2024).
Resource Rents: A Modest Share of National GDP
Despite its abundant primary resources, direct resource rents account for a relatively modest percentage of the broader economy. Total natural resource rents equaled 1.35% of national GDP in 2021, well below the global average for primary goods producers (World Bank, 2021).
Frequently Asked Questions
How much electricity does the Itaipú Dam produce?
In 2024, Itaipú generated 67,088 GWh and has produced over 3,051,799 GWh cumulatively since commencing operations in 1984, establishing a verified Guinness World Record for total power generation (Agencia IP, 2025).
What is Paraguay’s primary agricultural natural resource export?
Soybeans. In 2023, raw soybean shipments totaled US$3.423 billion, primarily supplying processing plants in Argentina (World Bank WITS, 2023).
Sources and References Used
- List of Countries by Mineral Production – Wikipedia
- Economic Indicators by Country – The Global Economy
- Forest Area (km²) – World Bank
- Forest Area (% of Land Area) – World Bank
- AQUASTAT Water and Agriculture Statistics – FAO
- Average Annual Precipitation (mm) – World Bank
- Environmental Performance Index (EPI 2024) – Yale University
- Bird Species by Country – Mongabay
- Amphibian Species by Country – Mongabay
- Mammal Species by Country – Mongabay
- Plant Species by Country – Mongabay
- Reptile Species by Country – Mongabay
- Endemic Bird Species by Country – Our World in Data
The FAO reported in 2023 that Paraguay generates virtually 100% of its domestic electricity from hydroelectric power, with the binational Itaipú Dam standing among the world’s most prodigious clean power facilities.
Last updated: August 19, 2026 (Review of official indicators and natural resource technical factsheet)
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