## 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_

## Source details

**Canonical URL:** [Paraguay: Request for a Two-Year Policy Coordination Instrument-Press Release; Staff Report; and Statement by the Executive Director for Paraguay](https://www.imf.org/en/publications/cr/issues/2022/12/03/paraguay-request-for-a-two-year-policy-coordination-instrument-press-release-staff-report-525940)

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## Bibliographic details
- Published: December 2, 2022
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9798400226519.002

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### 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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_Source: https://www.imf.org/en/publications/cr/issues/2022/12/03/paraguay-request-for-a-two-year-policy-coordination-instrument-press-release-staff-report-525940_