How has smuggling affected Paraguay's trade statistics?

Paraguay's official trade statistics have historically been severely underestimated due to the widespread smuggling of consumer goods into neighboring Brazil and Argentina.1

Because these transactions occurred outside of formal channels, they were not captured in the country's recorded economic data. However, this trend shifted starting in the late 1990s, when the Brazilian government implemented stricter controls on purchases made within Paraguay, which subsequently led to a notable decline in the smuggling trade.1