IMF Staff Country Reports

Paraguay: First Review Under the Policy Coordination Instrument and Request for Modification of Targets-Press Release; Staff Report

Publication Date:

June 13, 2023

Electronic Access:

Free Download. Use the free Adobe Acrobat Reader to view this PDF file

Summary:

Recent developments: Paraguay continues to recover from last year’s severe drought, with economic growth for 2023 expected at 4.5 percent. The recovery of agricultural exports is also contributing to an improved external current account, easing potential pressures on the exchange rate. In the context of a continued tight monetary policy stance, inflation has been declining over the last twelve months. The government successfully reduced the fiscal deficit to 3 percent of GDP, and fiscal policies remain on the envisaged consolidation path. Paraguay’s financial and banking sector remains stable. On April 30, Paraguay held national elections in which the candidate for the ruling Colorado party, Santiago Peña, was elected President by a significant margin.

Series:

Country Report No. 2023/207

Subject:

Economic sectors Government debt management Inflation International organization Macrostructural analysis Monetary policy Prices Public debt Public financial management (PFM) Public sector Structural reforms

Frequency:

regular