Paraguay : Staff Report for the 2002 Article IV Consultation

This 2002 Article IV Consultation highlights that Paraguay's economic performance in recent years has been characterized by slow economic growth and increasing unemployment and poverty rates. This stagnation reflects structural impediments to growth, exacerbated by external and domestic shocks. In 2002, the economy fell into its worst recession in decades, with real GDP down by 2½ percent, according to official estimates, or 4½ percent, according to IMF staff estimates, while inflation accelerated to 14½ percent. The public finances also deteriorated sharply in 2002.