Paraguay: Fifth Review Under the Policy Coordination Instrument, Request for Modification of a Quantitative Target and Resetting of Reform Targets, Third Review Under the Arrangement Under the Resilience and Sustainability Facility, Rephasing of Reform Measures, and Requests for Extension of the Policy Coordination Instrument and the Resilience and Sustainability Facility Arrangement-Press Release; and Staff Report
July 3, 2025
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Paraguay's economic activity remains robust, bolstered by ongoing
reforms and sound macroeconomic fundamentals. Inflation is within the central bank’s
tolerance range, and both public debt and the external position are sustainable. While the
outlook is favorable, it remains subject to elevated global risks and vulnerable to adverse
weather shocks. The authorities have reaffirmed their strong commitment to the fiscal
consolidation plan—an essential anchor of macroeconomic stability. Paraguay’s sovereign
debt trades with one of the lowest risk spreads in the region.
reforms and sound macroeconomic fundamentals. Inflation is within the central bank’s
tolerance range, and both public debt and the external position are sustainable. While the
outlook is favorable, it remains subject to elevated global risks and vulnerable to adverse
weather shocks. The authorities have reaffirmed their strong commitment to the fiscal
consolidation plan—an essential anchor of macroeconomic stability. Paraguay’s sovereign
debt trades with one of the lowest risk spreads in the region.
Subject: Anti-money laundering and combating the financing of terrorism (AML/CFT), Basel Core Principles, Climate change, Crime, Environment, Expenditure, Financial regulation and supervision, Public debt
Keywords: Anti-money laundering and combating the financing of terrorism (AML/CFT), Basel Core Principles, Climate change, country private sector diagnostic, E. World Bank engagement, Global, Policy discussion, Resilience and Sustainability Facility arrangement, RSF program implementation, RSF review, Sustainability facility update
Pages:
85
Volume:
2025
DOI:
Issue:
161
Series:
Country Report No. 2025/161
Stock No:
1PRYEA2025001
ISBN:
9798229015301
ISSN:
1934-7685
