Paraguay: Sixth Review Under the Policy Coordination Instrument, and Fourth Review Under the Resilience and Sustainability Facility Arrangement-Press Release; Staff Report; and Staff Supplement

International Monetary Fund

No 2026/013, IMF Staff Country Reports from International Monetary Fund

Abstract: This paper presents Paraguay’s Sixth Review under the Policy Coordination Instrument (PCI), and Fourth Review under the Resilience and Sustainability Facility (RSF) Arrangement. Paraguay’s economy performance remains strong, with the authorities making steady progress with reforms supported by the PCI and RSF, while advancing on their fiscal consolidation objectives and keeping inflation within the central bank’s tolerance range. The authorities are working on the protocols and legal changes required to implement two of the remaining unmet reform targets (RT) while the RT on the reform of the insolvency law has been postponed but remains on the authorities’ agenda. The reviews mark the successful completion of a comprehensive home-grown reform agenda supported by the PCI and RSF. Continued prudent macroeconomic management including the completion of the fiscal consolidation plan, and sustained progress with structural reforms remain critical to strengthen macroeconomic stability and sustainable, inclusive growth.

Keywords: Paraguay's sovereign bonds; month-to-month headline inflation; draft bill; production structure; World Bank Assessment Letter; Global (search for similar items in EconPapers)
Pages: 73
Date: 2026-01-23
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