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

Author: International Monetary Fund. Western Hemisphere Dept.

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.

Volume/Issue: Volume 2022 Issue 355

Publication date: December 2022

ISBN: 9798400226519

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Topics covered in this book

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Finance , Economics- Macroeconomics , Money and Monetary Policy , Public Finance , International - Economics , governance assessment report , reform agenda , government support , government structure , spillover effect , Social assistance spending , Government debt management , Global

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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. Those conditions are reflected in rising social demands within a politicized environment before the 2023 general elections. The outlook remains favorable, and the authorities are pursuing policies to follow a stronger, more resilient, and inclusive development path. On the back of very positive experiences with Fund-supported programs, the authorities are requesting approval of a two-year program supported by the Policy Coordination Instrument (PCI) to underpin the implementation of needed structural reforms.