Paraguay: Selected Issues
IMF Staff Country Reports, April 30, 2019
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- Canonical URL
- Paraguay: Selected Issues
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Bibliographic details
- Published: April 30, 2019
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781498312318.002
Growth drivers and composition
- Growth acceleration over the past 15 years is the combined result of:
- a bounce back from the crisis in the late 1990s and the subpar growth of the two decades prior;
- a benevolent external environment, the commodity price boom in particular;
- improved macroeconomic stability.
- Composition of past growth:
- largely extensive growth coming from capital deepening and increasing labor inputs;
- total factor productivity growth has played a bigger role in the most recent years.
Convergence and structural constraints
- Despite strong recent growth, Paraguay has not attained significant economic convergence with advanced economies when viewed over a longer period.
- Empirical evidence:
- strong linkage between GDP per capita and a composite structural indicator such as the World Competitiveness Index;
- Paraguay ranked poorly on the World Competitiveness Index.
- Implication:
- identifying and correcting Paraguay’s structural deficiencies that may be hampering productivity growth and capital accumulation will be crucial for sustainable growth.
Subjects and keywords (as listed)
- Subjects: Agricultural prices, Basel Core Principles, Commodity prices, Credit, Credit booms, Exports, International trade, Money, Prices
- Keywords: Agricultural prices, commodity price boom, Commodity prices, CR, Credit, Credit booms, credit growth, dollar-denominated credit, Europe, Exports, GDP, Global, IMF staff calculation, IMF staff estimate, ISCR, Paraguay, Western Europe
Content in this bundle
- Paraguay: Selected Issues; IMF Country Report No. 19/112; March 29, 2019