International Monetary Fund. Western Hemisphere Dept.
INTERNATIONAL MONETARY FUND
Paraguay's macroeconomic performance has been robust. For the expansion to be durable, however, it needs to continue broadening to more sectors and be more inclusive. The recovery in key partners remains uncertain, while domestic risks include weather-related shocks and ongoing adjustments in banks' balance sheets. Strengthening institutions and closing infrastructure gaps is essential to overcome challenges to faster income convergence and more inclusive growth.