Paraguay: Fourth Review Under the Policy Coordination Instrument, Request for Modification of Targets, Second Review Under the Arrangement Under the Resilience and Sustainability Facility, and Request for Rephasing Access-Press Release; and Staff Report
IMF Staff Country Reports, December 23, 2024
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- Paraguay: Fourth Review Under the Policy Coordination Instrument, Request for Modification of Targets, Second Review Under the Arrangement Under the Resilience and Sustainability Facility, and Request for Rephasing Access-Press Release; and Staff Report
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Bibliographic details
- Published: December 23, 2024
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9798400294266.002
Summary and Key Findings
- Focus: Fourth Review under the Policy Coordination Instrument (PCI); Request for Modification of Targets; Second Review under the Arrangement under the Resilience and Sustainability Facility (RSF); Request for Rephasing Access.
- Economic activity: Buoyant activity continues, reflecting high consumer confidence and expanding services and manufacturing sectors.
- Program performance: The program performance under the PCI has been solid, underpinned by actions to preserve macroeconomic stability to enhance the country’s economic growth prospects.
- Climate agenda: Progress on the climate agenda under the RSF remains strong, bolstering Paraguay's resilience to climate shocks.
Macroeconomic outlook and policy stance
- Growth drivers: High consumer confidence and expanding services and manufacturing sectors are supporting activity.
- Macroeconomic stability: Actions under the PCI aim to preserve macroeconomic stability to enhance growth prospects.
Fiscal policy and public finances
- Fiscal sustainability: Maintaining fiscal sustainability is essential going forward.
- Public pension system: Stabilizing the finances of the public pension system should remain a priority.
Monetary policy guidance
- Policy stance: Monetary policy should continue to be guided by data when contemplating further easing.
Resilience and Sustainability Facility (RSF)
- RSF progress: Progress on the climate agenda under the RSF remains strong.
- Resilience objective: RSF-supported measures bolster Paraguay's resilience to climate shocks.
Structural reforms and inclusiveness
- Reform priorities:
- Accelerate structural reform implementation to promote growth and inclusiveness.
- Reforms in labor markets to address a high level of informality.
- Improve governance and address corruption.
Program requests and operational actions
- Requests included: Modification of targets under the PCI; Rephasing of access under the RSF arrangement.
- Program performance characterization: Described as solid, supported by measures to preserve macroeconomic stability.
Content in this bundle
- 1pryea2024004-print-pdf