Overview
- CAME reported December retail sales down 5.2% year over year, though seasonally adjusted sales rose 5.2% from November on festive spending and year‑end bonuses that it called a temporary financial relief.
- Annual sales for 2025 finished 2.5% above 2024, lifted by strong gains early in the year, but growth stalled from May and logged eight consecutive year‑over‑year declines through December.
- Six of seven categories fell in December, with the steepest drops in bazar and decoration (-15%), perfumery (-9.8%) and apparel (-8.5%), while hardware, electrical and construction goods edged up 0.8%.
- Retailers described conditions as stable versus a year ago in 55% of cases and worse in 27.6%, and they see 2026 with cautious optimism as investment remains constrained by high costs and thin margins.
- Official figures point to a deep industrial slump, with manufacturing down 8.7%, as the government pushes deregulation and faster trade opening, including a planned Mercosur–EU agreement signing on January 17 in Asunción.