August 14, 2020

The IMF reduces the growth prospects of the Paraguayan economy to 4.4% of GDP



The International Monetary Fund (IMF) reduced its forecast for growth of the Paraguayan economy to 4.4% by 2018, one tenth less than in its forecast for April, according to the report "World Economic Outlook", published today.

That 4.4% places Paraguay above the average for Latin America, whose economy will grow by 1.2% in 2018 according to the IMF, and makes it the fastest growing economy in South America, followed by Bolivia, with a 4 ,3 %.

The Paraguayan economy will maintain its rate of growth next year, when the agency estimates that it will increase by 4.2%, one tenth higher than expected in April, and will continue with this trend until 2023, 4.1%, as that the continent, which will grow 2.2% in 2019 and 2.9% in 2023.

The bad situation experienced by neighboring countries, especially Argentina, whose economy will fall by 2.6% this year and 1.6% the next, explains the lower forecast of growth of the economy of Paraguay, very influenced by that of its neighbors bigger.

The lower outlook for economic growth for 2018 does not affect inflation, according to the IMF's outlook, which calculates a rate of 4.2% for 2018 and 4% next year, identical figures as in its previous report, and, according to Fund data, prices will move at those levels until 2023.

In addition, the IMF improves its predictions for the current account balance, expecting a deficit of 1.3% for this year, 7 tenths less than what it predicted in April, and 0.9% in 2019, compared to 1, 2% previous.

The study indicates that this deficit will be reduced in the coming years to reach 0.2% of GDP in 2023.

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