Relations between Germany and Paraguay are friendly. The people of Paraguay have a very positive image of Germany. This is based in part on technological and economic successes and on the achievements of the Mennonites who moved to Paraguay.

Roughly 30,000 German nationals live in Paraguay. The country is also home to some 150,000 people of German descent, for example in the Mennonite colonies in Chaco and in eastern Paraguay. The Mennonites have, over the generations, done much to develop the country, especially in the field of agriculture. Germans are one of the largest immigrant groups. Emigration from Germany to Paraguay has increased again since 2015.

Paraguay belongs to the MERCOSUR free trade area. Paraguay’s relations with the European Union have further intensified in recent years. Among the EU member states, Spain and Germany are particularly important partners.

Trade with the EU totalled 1.3 billion euro in 2022, and trade with Germany in 2023 amounted to 263 million euro. Paraguay’s main imports from Germany are chemical products, cars, machinery and electrical goods; it primarily exports raw materials, above all oleaginous seeds and fruits. German bilateral development cooperation with Paraguay was terminated in the course of the German Development Ministry’s reform “BMZ 2030”. However, EU development cooperation continues, and Germany still participates in triangular cooperation and regional projects.

A German-Paraguayan Cultural Agreement has been in place since 1994. This makes it possible for German teachers to be seconded to Paraguay. The Goethe School was established in 1893. It is both a German School Abroad and an international school, attended by 1300 pupils and supported by seven seconded teachers.

German as a foreign language is widely taught in the country. Each year, roughly 500 people take the exams to obtain language certificates at the 15 PASCH schools.

In Asunción, there is a German-Paraguayan cultural institute (Instituto Cultural Paraguayo-Alemán – Goethe-Zentrum) that makes a major contribution to the capital’s cultural scene, offering language courses and a wide range of cultural events. The German-Paraguayan University (UPA) is a private binational university with a focus on business and engineering. A German Academic Exchange Service lectureship provides advice on studying and on scholarships.