## Paraguay: Selected Issues

_IMF Staff Country Reports, April 30, 2019_

## Source details

**Canonical URL:** [Paraguay: Selected Issues](https://www.imf.org/en/publications/cr/issues/2019/04/30/paraguay-selected-issues-46839)

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- [Markdown version](/en/publications/cr/issues/2019/04/30/paraguay-selected-issues-46839/index.md)
- [Structured JSON version](/en/publications/cr/issues/2019/04/30/paraguay-selected-issues-46839/index.json)
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## Bibliographic details
- Published: April 30, 2019
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781498312318.002

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### Growth drivers and composition
- Growth acceleration over the past 15 years is the combined result of:
  - a bounce back from the crisis in the late 1990s and the subpar growth of the two decades prior;
  - a benevolent external environment, the commodity price boom in particular;
  - improved macroeconomic stability.
- Composition of past growth:
  - largely extensive growth coming from capital deepening and increasing labor inputs;
  - total factor productivity growth has played a bigger role in the most recent years.

### Convergence and structural constraints
- Despite strong recent growth, Paraguay has not attained significant economic convergence with advanced economies when viewed over a longer period.
- Empirical evidence:
  - strong linkage between GDP per capita and a composite structural indicator such as the World Competitiveness Index;
  - Paraguay ranked poorly on the World Competitiveness Index.
- Implication:
  - identifying and correcting Paraguay’s structural deficiencies that may be hampering productivity growth and capital accumulation will be crucial for sustainable growth.

### Subjects and keywords (as listed)
- Subjects: Agricultural prices, Basel Core Principles, Commodity prices, Credit, Credit booms, Exports, International trade, Money, Prices
- Keywords: Agricultural prices, commodity price boom, Commodity prices, CR, Credit, Credit booms, credit growth, dollar-denominated credit, Europe, Exports, GDP, Global, IMF staff calculation, IMF staff estimate, ISCR, Paraguay, Western Europe

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## Content in this bundle

- **Paraguay: Selected Issues; IMF Country Report No. 19/112; March 29, 2019**
  - [Paraguay: Selected Issues; IMF Country Report No. 19/112; March 29, 2019 (Markdown version)](/-/media/files/publications/cr/2019/1pryea2019002.pdf.md){rel="alternate" type="text/markdown"}
  - [Paraguay: Selected Issues; IMF Country Report No. 19/112; March 29, 2019 (PDF)](/-/media/files/publications/cr/2019/1pryea2019002.pdf){rel="external" type="application/pdf"}

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_Source: https://www.imf.org/en/publications/cr/issues/2019/04/30/paraguay-selected-issues-46839_