Paraguay: Request for a Two-Year Policy Coordination Instrument-Press Release; Staff Report; and Statement by the Executive Director for Paraguay

IMF Staff Country Reports, December 2, 2022

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Paraguay: Request for a Two-Year Policy Coordination Instrument-Press Release; Staff Report; and Statement by the Executive Director for Paraguay

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Bibliographic details

• Published: December 2, 2022
• Series: IMF Staff Country Reports
• DOI: https://doi.org/10.5089/9798400226519.002

Summary

• Paraguay continues to recover from the COVID-19 pandemic amidst simultaneous shocks that would lead to flat GDP growth and inflation above the IT range this year.
• Rising social demands are occurring within a politicized environment ahead of the 2023 general elections.
• The outlook remains favorable, and the authorities are pursuing policies to follow a stronger, more resilient, and inclusive development path.
• Authorities request approval of a two-year program supported by the Policy Coordination Instrument (PCI) to underpin the implementation of needed structural reforms.
• The request is based on very positive experiences with Fund-supported programs.

Economic outlook and recent shocks

• Flat GDP growth this year.
• Inflation above the IT range this year.
• Simultaneous shocks are affecting the recovery from the COVID-19 pandemic.
• Political environment: rising social demands and heightened politicization before the 2023 general elections.

Program request and policy rationale

• Request: approval of a two-year program supported by the Policy Coordination Instrument (PCI).
• Purpose: to underpin the implementation of needed structural reforms.
• Justification: builds on very positive experiences with prior Fund-supported programs.
• Policy focus: pursue a stronger, more resilient, and inclusive development path.

Subject coverage and keywords

• Subject areas:
  • Expenditure
  • Government debt management
  • International organization
  • Monetary policy
  • Public debt
  • Public financial management (PFM)
  • Revenue administration
  • Social assistance spending
• Keywords:
  • Global
  • governance assessment report
  • Government debt management
  • government structure
  • government support
  • reform agenda
  • Social assistance spending
  • spillover effect

Paraguay: Request for a Two-Year Policy Coordination Instrument-Press Release; Staff Report; and Statement by the Executive Director for Paraguay, December 2, 2022; DOI: https://doi.org/10.5089/9798400226519.002

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