Advanced Search

LatinNews Regional Monitor: Brazil & Southern Cone - 7 March 2019

In brief: Paraguay

* The International Monetary Fund (IMF) has released its concluding statement following a mission to Paraguay in which it has revised its 2019 GDP growth forecast for the country down to 3.5%, from 4.2% last October. The IMF cites a reduced soyabean harvest due to a drought in the early planting season as negatively affecting growth. A pickup in tourism and cross-border trade, which slowed after the guaraní appreciated against the Argentine peso and the Brazilian real last year, should help offset this, although Paraguay’s economy will remain vulnerable to any developments in neighbouring countries. The IMF welcomed the government’s current fiscal and monetary policy, and it expects year-on-year inflation to return to 4% by the end of 2019.