## 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_

## Source details

**Canonical URL:** [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](https://www.imf.org/en/publications/cr/issues/2024/12/21/paraguay-fourth-review-under-the-policy-coordination-instrument-request-for-modification-of-559963)

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## Bibliographic details
- Published: December 23, 2024
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9798400294266.002

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### 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.

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- **1pryea2024004-print-pdf**
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_Source: https://www.imf.org/en/publications/cr/issues/2024/12/21/paraguay-fourth-review-under-the-policy-coordination-instrument-request-for-modification-of-559963_