LatinNews Daily - 11 December 2019

* Paraguay’s finance minister, Benigno López, has warned that there is a possibility that the country will post a fiscal deficit higher than the 2.5% of GDP that the government has projected for the year. Paraguay’s 2013 fiscal responsibility law (LRF) sets a 1.5% of GDP fiscal deficit cap. But last month the government led by President Mario Abdo Benítez got congress to agree to lift this cap to 3% this year in order to allow it to increase spending in support of the domestic economy, which fell into recession in the second quarter. The government then announced plans to increase investment spending and projected that it would close the year with a deficit of 2.5%. However, López has said that government is now evaluating making further investments in infrastructure projects this year that could lead to the year-end deficit reaching 2.6% or 2.7%. 

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