Cover IMF Staff Country Reports
Paraguay: Request for a Two-Year Policy Coordination Instrument-Press Release; Staff Report; and Statement by the Executive Director for Paraguay
Author:
International Monetary Fund. Western Hemisphere Dept.
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Series:
IMF Staff Country Reports
Volume/Issue:
Volume 2022: Issue 355
Language:
English
Publication Date:
02 Dec 2022
DOI:
https://doi.org/10.5089/9798400226519.002
ISBN:
9798400226519
ISSN:
1934-7685
Pages:
74
Keywords:
governance assessment report; reform agenda; government support; government structure; spillover effect; Social assistance spending; Government debt management; Global
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This paper discusses Paraguay’s request for a two-year Policy Coordination Instrument (PCI). Paraguay continues to recover from the coronavirus disease 2019 pandemic amidst simultaneous shocks that would lead to flat GDP growth and inflation above the Central Bank’s target range. The PCI aims to address the current challenges and foster policy continuity that would encompass two years, the last year of the current and the first year of the next administration. Program reviews take place on a semiannual fixed schedule. While the PCI involves no use of IMF resources, successful completion of program reviews would help signal Paraguay’s commitment to continued strong economic policies and structural reforms. Rebuilding policy buffers and returning to the fiscal deficit ceiling of 1.5 percent of GDP in 2024 will be critical to ensure macroeconomic stability. Important measures include enhancing domestic revenue mobilization, reforming the public pension fund, and raising the efficiency of the public sector. The authorities are focused on fostering the conditions for sustained economic growth, bolstering the efficient use of public resources, and creating more favorable conditions for private investment.
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Cover IMF Staff Country Reports
IMF Staff Country Reports
ISSN:
1934-7685
Publisher:
International Monetary Fund
Volume 2022: Issue 355