Paraguay: 2022 Article IV Consultation-Press Release; and Staff Report
IMF Staff Country Reports, June 21, 2022
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- Paraguay: 2022 Article IV Consultation-Press Release; and Staff Report
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Bibliographic details
- Published: June 21, 2022
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9798400213779.002
Summary findings
- After two consecutive years of GDP decline driven by external shocks, Paraguay’s economy rebounded in 2021.
- 2019: growth was -0.4 percent due to drought and flooding.
- 2020: GDP fell by 0.8 percent as the impact of the pandemic on the secondary and tertiary sectors was partly compensated by a rebound of agriculture and an extensive emergency package.
- 2021: growth rebounded to 4.2 percent.
- Heatwaves and a severe drought decelerated the recovery and have limited 2022 growth prospects.
- A recovery is projected for 2023 and the medium-term.
- The loss of agricultural export revenue is affecting Paraguay’s balance of payments in 2022.
- The external position in 2021 was stronger than the level implied by fundamentals and desirable policies.
Economic performance and shocks
- 2019: drought and flooding reduced economic growth to -0.4 percent.
- 2020: pandemic impact led to GDP falling by 0.8 percent; agriculture rebounded and an extensive emergency package helped cushion the shock.
- 2021: economy rebounded with growth of 4.2 percent.
- 2022: heatwaves and a severe drought have decelerated the recovery and constrained growth prospects.
- Projections: recovery expected in 2023 and over the medium-term.
External sector and balance of payments
- 2021 external position: stronger than the level implied by fundamentals and desirable policies.
- 2022 external pressures: loss of agricultural export revenue is affecting the balance of payments.
Subjects and keywords
- Subject: Basel Core Principles, External debt, Financial regulation and supervision, Inflation, International organization, Monetary policy, Prices, Public debt, Revenue administration
- Keywords: Basel Core Principles, data ROSC, financial asset, Global, headline inflation, Inflation, inflation risk, liability positions vis-à-vis nonresident, money market rate, PPI coverage, substantial spending needs, tolerance corridor
International Monetary Fund. Paraguay: 2022 Article IV Consultation-Press Release; and Staff Report (IMF Staff Country Reports 2022, 177).
Content in this bundle
- 1. Recent Developments