Paraguay has successfully concluded the sixth review under the Policy Coordination Instrument and the fourth under the Resilience and Sustainability Facility. The International Monetary Fund staff mission commended the authorities for maintaining sound macroeconomic policies, fiscal discipline, and steady progress toward long-term resilience.
The IMF team highlighted that Paraguay’s economy continues to perform well, supported by strong agricultural exports, construction activity, and stable domestic demand. Inflation remains contained within the central bank’s target range, while fiscal consolidation efforts are helping rebuild buffers and sustain investor confidence.
Authorities reaffirmed their commitment to responsible fiscal management and structural reforms aimed at improving governance and economic competitiveness. The government’s efforts to strengthen revenue administration, rationalize public expenditure, and enhance the efficiency of state-owned enterprises were recognized as key components of Paraguay’s macroeconomic stability strategy.
The mission also noted advances in climate policy through the Resilience and Sustainability Facility. Paraguay is implementing green investment frameworks and climate-resilient infrastructure projects to mitigate the impact of external shocks and strengthen sustainability in key sectors such as energy and agriculture. The country’s strategy integrates environmental resilience with its broader growth objectives, ensuring that fiscal and climate agendas move in tandem.
Public investment efficiency and transparency continue to improve, reflecting reforms in procurement and data reporting systems. These measures aim to enhance trust in public institutions and support private-sector participation in national development priorities. The authorities emphasized that maintaining fiscal prudence remains essential, particularly in an environment of evolving global financial conditions.
The IMF mission concluded that Paraguay’s medium-term outlook remains positive, with growth expected to stay near four percent in 2025. Continued progress under the Policy Coordination Instrument and the Resilience and Sustainability Facility will further anchor economic stability and help mobilize international financing to support sustainable development goals.
Financial analysts view Paraguay’s reform trajectory as a signal of strong policy credibility. With a stable macroeconomic framework, improving fiscal metrics, and rising climate-focused investments, the country is consolidating its position among Latin America’s most resilient economies.
As the IMF Board prepares to review the staff assessment in the coming weeks, Paraguay’s government remains focused on deepening reforms that balance fiscal responsibility with social inclusion and long-term climate resilience.
