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
IMF Staff Country Reports, July 3, 2025
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- Canonical URL
- 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
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Bibliographic details
- Published: July 3, 2025
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9798229015301.002
Summary
- Paraguay's economic activity remains robust, bolstered by ongoing reforms and sound macroeconomic fundamentals.
- Inflation is within the central bank’s tolerance range.
- Both public debt and the external position are sustainable.
- The outlook is favorable but subject to elevated global risks and vulnerable to adverse weather shocks.
- The authorities have reaffirmed 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.
Economic outlook and risks
- Robust domestic economic activity supported by reforms and macroeconomic fundamentals.
- Key downside risks:
- Elevated global risks.
- Vulnerability to adverse weather shocks.
Fiscal policy and reform commitments
- Authorities reaffirmed commitment to the fiscal consolidation plan as an essential anchor of macroeconomic stability.
- The document addresses:
- Request for modification of a quantitative target.
- Resetting of reform targets.
- Rephasing of reform measures.
- Requests for extension of the Policy Coordination Instrument and the Resilience and Sustainability Facility Arrangement.
Program reviews and facility arrangements
- Fifth review under the Policy Coordination Instrument.
- Third review under the Arrangement under the Resilience and Sustainability Facility.
- Requests include:
- Modification of a quantitative target.
- Resetting and rephasing of reform measures.
- Extension requests for the Policy Coordination Instrument and the Resilience and Sustainability Facility arrangement.
Thematic coverage and keywords
- Subjects covered: 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 include: 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.
Content in this bundle
- 1pryea2025001-print-pdf