Paraguay: 2017 Article IV Consultation-Press Release and Staff Report

Author: International Monetary Fund. Western Hemisphere Dept.

2017 Article IV Consultation-Press Release and Staff Report

Volume/Issue: Volume 2017 Issue 233

Publication date: July 2017

ISBN: 9781484312193

$18.00

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Topics covered in this book

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Banks and Banking , Finance , Money and Monetary Policy , Public Finance , Taxation - General , ISCR , CR , outturn , central bank , Inter-American Development Bank , Paraguay , credit growth , credit dollarization , central bank of Paraguay , IADB Paraguay , monetary policy rate , CPI index , Credit , Basel Core Principles , Central bank policy rate , Global

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Summary

This 2017 Article IV Consultation highlights that Paraguay has grown robustly despite a more challenging external environment. The economy gained momentum toward the end of 2016 and expanded by 6.5 percent (year-over-year) during the first quarter of 2017. Real GDP growth is projected to reach 4.2 percent in 2017, reflecting a more moderate pace of activity in the second half of the year. Investment will likely be a crucial driver of growth, as major infrastructure projects are undertaken. Over the medium term, real GDP growth is expected to remain near potential of just below 4 percent. Risks around the outlook are to the downside, especially from heightened political uncertainty in Brazil.