The IMF Country Reports Series covers economic and financial developments and trends in member countries. Each report, prepared by a staff team after discussions with officials of the country, is published at the option of the member.
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 21/2 percent, according to official estimates, or 41/2 percent, according to IMF staff estimates, while inflation accelerated to 141/2 percent. The public finances also deteriorated sharply in 2002.