Paraguay: Selected Issues
IMF Staff Country Reports, July 1, 2024
Source details
- Canonical URL
- Paraguay: Selected Issues
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Bibliographic details
- Published: July 1, 2024
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9798400280214.002
Overview
- The Selected Issues paper analyzes trade barriers in Paraguay and compares Paraguay's trade performance with other Latin American nations and countries outside the region that share similar traits with Paraguay.
- The study emphasizes the role of comprehensive policies in infrastructure development, governance enhancement, and human capital improvement to promote trade.
Key findings on trade performance and barriers
- Reducing trade barriers and overcoming infrastructure shortfalls are identified as key strategies to foster trade and economic development.
- Enhancing Paraguay’s attractiveness for investment is critical to promoting trade across sectors.
- Paraguay exhibits levels of export concentration across products and an increasing concentration across markets, which raises vulnerability.
Risks highlighted
- Primary agricultural exports are vulnerable to droughts, creating downside risks for export stability and economic outcomes.
Policy recommendations and strategic priorities
- Intensify diversification strategies:
- Diversify exports both in terms of products and export markets to reduce reliance on concentrated agricultural exports.
- Invest in agricultural resilience:
- Invest in agricultural technology and practices that enhance drought resilience to safeguard primary exports.
- Develop nonagricultural export sectors:
- Explore and develop nonagricultural sectors for export to reduce reliance on volatile agricultural commodities.
- Implement comprehensive policies to:
- Improve infrastructure.
- Enhance governance.
- Strengthen human capital.
- Enact policies to enhance Paraguay’s attractiveness for investment.
Content in this bundle
- Paraguay: Selected Issues; IMF Country Report No. 24/201; June 10, 2024