IMF Staff Country Reports

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.