Paraguay's economic activity remained strong in 2024. GDP
growth is anticipated to reach 4 percent with some upward potential due to favorable
performance of financial intermediation, services, and manufacturing. Inflation is firmly
under control and expectations are well anchored. Monetary policy is close to its
neutral stance. As projected, the current account has shifted into a wider deficit this
year reflecting the post recovery adjustment in trade and higher imports. Fiscal
consolidation is continuing with the deficit expected to reach the budgeted 2.6 percent
of GDP. In the second part of the year, Paraguay has obtained an investment grade
status from Moody’s for the first time in history.