## Paraguay: First Review Under the Policy Coordination Instrument and Request for Modification of Targets-Press Release; Staff Report

_IMF Staff Country Reports, June 13, 2023_

## Source details

**Canonical URL:** [Paraguay: First Review Under the Policy Coordination Instrument and Request for Modification of Targets-Press Release; Staff Report](https://www.imf.org/en/publications/cr/issues/2023/06/13/paraguay-first-review-under-the-policy-coordination-instrument-and-request-for-modification-534732)

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## Bibliographic details
- Published: June 13, 2023
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9798400245756.002

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### Overview
- Presents Paraguay’s First Review Under the Policy Coordination Instrument (PCI) and Request for Modification of Targets.
- The PCI supports Paraguay’s macroeconomic policies and structural reforms, aiming at ensuring macroeconomic and fiscal stability, fostering economic growth, and enhancing social protection and inclusion.
- Paraguay’s economy demonstrated resilience during a four-year period of multiple adverse shocks, including recovery from the coronavirus disease 2019 pandemic and a severe drought in early 2022.

### Economic outlook and risks
- Economic growth is now rebounding, mainly on behalf of the recovering agricultural sector.
- The medium-term outlook is described as favorable.
- Paraguay is exposed to various external risks, but their potential impact appears moderate in the near-to-medium term.
- Projections and targets:
  - Economic growth is projected at 4.5 percent for 2023.
  - The external current account is projected to improve notably.
  - The rate of inflation is expected to converge back to the central bank’s target of four percent in the first half of 2024 at the latest.

### Fiscal and monetary policy implications
- Continued sound and credible fiscal policies are identified as critical to safeguard the favorable scenario.
- Monetary objective: convergence of inflation to the central bank’s target of four percent by the first half of 2024.

### Structural reforms and social objectives
- The PCI supports structural reforms intended to foster economic growth and enhance social protection and inclusion.
- Emphasis on policies that ensure macroeconomic and fiscal stability while promoting social objectives.

### Key statistics and identifiers cited in the report
- Pages: 60
- Volume: 2023
- Issue: 207
- Series: Country Report No. 2023/207
- DOI: https://doi.org/10.5089/9798400245756.002
- Stock No: 1PRYEA2023001
- ISBN: 9798400245756
- ISSN: 1934-7685

*Paraguay: First Review Under the Policy Coordination Instrument and Request for Modification of Targets-Press Release; Staff Report (IMF Staff Country Reports 2023, 207).*

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_Source: https://www.imf.org/en/publications/cr/issues/2023/06/13/paraguay-first-review-under-the-policy-coordination-instrument-and-request-for-modification-534732_