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Paraguay: Fifth Review Under the Policy Coordination Instrument, Request for Modification of a Quantitative Target and Resetting of Reform Targets, Third Review Under the Arrangement Under the Resilience and Sustainability Facility, Rephasing of Reform Measures, and Requests for Extension of the Policy Coordination Instrument and the Resilience and Sustainability Facility Arrangement-Press Release; and Staff Report

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  • International Monetary Fund

Abstract

Paraguay's economic activity remains robust, bolstered by ongoing reforms and sound macroeconomic fundamentals. Inflation is within the central bank’s tolerance range, and both public debt and the external position are sustainable. While the outlook is favorable, it remains subject to elevated global risks and vulnerable to adverse weather shocks. The authorities have reaffirmed their strong commitment to the fiscal consolidation plan—an essential anchor of macroeconomic stability. Paraguay’s sovereign debt trades with one of the lowest risk spreads in the region.

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  • International Monetary Fund, 2025. "Paraguay: Fifth Review Under the Policy Coordination Instrument, Request for Modification of a Quantitative Target and Resetting of Reform Targets, Third Review Under the Arrangement Under the Resilie," IMF Staff Country Reports 2025/161, International Monetary Fund.
    • Handle: RePEc:imf:imfscr:2025/161
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