Paraguay: First Review Under the Policy Coordination Instrument and Request for Modification of Targets-Press Release; Staff Report
IMF Staff Country Reports, June 13, 2023
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- Paraguay: First Review Under the Policy Coordination Instrument and Request for Modification of Targets-Press Release; Staff Report
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Bibliographic details
- Published: June 13, 2023
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9798400245756.002
Overview
- Presents Paraguay’s First Review Under the Policy Coordination Instrument (PCI) and Request for Modification of Targets.
- The PCI supports Paraguay’s macroeconomic policies and structural reforms, aiming at ensuring macroeconomic and fiscal stability, fostering economic growth, and enhancing social protection and inclusion.
- Paraguay’s economy demonstrated resilience during a four-year period of multiple adverse shocks, including recovery from the coronavirus disease 2019 pandemic and a severe drought in early 2022.
Economic outlook and risks
- Economic growth is now rebounding, mainly on behalf of the recovering agricultural sector.
- The medium-term outlook is described as favorable.
- Paraguay is exposed to various external risks, but their potential impact appears moderate in the near-to-medium term.
- Projections and targets:
- Economic growth is projected at 4.5 percent for 2023.
- The external current account is projected to improve notably.
- The rate of inflation is expected to converge back to the central bank’s target of four percent in the first half of 2024 at the latest.
Fiscal and monetary policy implications
- Continued sound and credible fiscal policies are identified as critical to safeguard the favorable scenario.
- Monetary objective: convergence of inflation to the central bank’s target of four percent by the first half of 2024.
Structural reforms and social objectives
- The PCI supports structural reforms intended to foster economic growth and enhance social protection and inclusion.
- Emphasis on policies that ensure macroeconomic and fiscal stability while promoting social objectives.
Key statistics and identifiers cited in the report
- Pages: 60
- Volume: 2023
- Issue: 207
- Series: Country Report No. 2023/207
- DOI: https://doi.org/10.5089/9798400245756.002
- Stock No: 1PRYEA2023001
- ISBN: 9798400245756
- ISSN: 1934-7685
Paraguay: First Review Under the Policy Coordination Instrument and Request for Modification of Targets-Press Release; Staff Report (IMF Staff Country Reports 2023, 207).
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