Paraguay: 2019 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Paraguay

April 30, 2019

Preview Citation

Format: Chicago

Paraguay: 2019 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Paraguay, (USA: International Monetary Fund, 2019) accessed November 8, 2024

Summary

This 2019 Article IV Consultation on Paraguay focused on the policies needed to promote long-term growth, widen the tax base, improve public spending efficiency, and strengthen financial sector supervision. Poverty has fallen sharply, from 58 percent in 2002 to 26 percent currently, although it remains one of the highest in Latin America. Continued convergence is expected to help reduce poverty further and help generate revenues to finance large spending needs. The banking sector is well-capitalized and stable, but the casas de credito and casas comerciales need to be better understood and supervised. The pension system needs reform, both to prevent large pension deficits in the future, and to boost the development of the domestic capital market for long-term instruments. The authorities concurred with IMF staff’s assessment of the main bottlenecks to long-term economic growth. They also agreed structural reforms would help to attract more foreign investments and increase the dynamism of domestic private sector.

Subject: Exchange rates, Exports, External debt, Fiscal policy, Foreign exchange, International trade, Public debt

Keywords: Accommodative monetary policy stance, CPI, CR, Exchange rates, Exports, Financial asset, GDP, Global, Inflation trend measure, ISCR, Monetary policy stance, Private sector, Producer price index, Profitability indicator, South America, Western Europe, Western Hemisphere

Publication Details

Pages:

72
Volume:

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DOI:

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Issue:

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Series:

Country Report No. 2019/111
Stock No:

1PRYEA2019001
ISBN:

9781498312240
ISSN:

1934-7685

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