Growth prospects for next year are positive, based mainly on the recovery of the agricultural sector and the maintenance of public investment levels, said the Minister of Finance, Oscar Llamosas, during a speech at the 12th. Expo Paraguay Brazil, this afternoon.
The event, called “Economic Outlook for Paraguay in 2023”, also featured a presentation by the economist Humberto Colmán, a member of the board of directors of the Central Bank of Paraguay (BCP). It was held before businessmen and associates of the Paraguay-Brazil Chamber of Commerce, and special guests.
During his presentation, the head of the Treasury stated that Despite the complex and uncertain scenario that exists worldwide, Paraguay’s prospects for next year are positive.
“We believe that the country’s economy will return to its positive growth rates primarily focused on the recovery of the agricultural sector, which has started its campaign for next year with very important numbers. The economy could be growing above 4% according to the latest report from the International Monetary Fund”, he explained.
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As for this year, he said that the data recently published by the Central Bank of Paraguay (BCP) show a recovery in economic activity in August and Septemberwhich shows that the negative numbers of the first semester are being overcome thanks to greater economic activity in the second semester.
Regarding public works, he stressed that it is registered orAn important dynamic in public investment and that since 2020 a significant effort has been made so that this sector can have a countercyclical impact on the economy.
“The construction industry has been one of the pillars that has supported the economy in 2020 and 2021, despite some reductions that have been seen with respect to the Gross Domestic Product (GDP), public investment is still important and we project that it will continue to be a dynamic actor within the economy”, he emphasized.
Another of the issues addressed by Minister Llamosas was the review of the qualification country made by Moody’s in June this year. In this sense, she emphasized the change in the economic outlook from stable to positiveParaguay being one of the few countries that maintained its credit rating.
He also said that the rating agency’s report includes certain recommendations that could lead to an upward update of the country’s rating, such as the approval and implementation of structural reforms related to the civil service, the public pension fund and public contracting.
Finally, Minister Llamosas highlighted the agreement recently signed with the International Monetary Fund (IMF) called the “Policy Coordination Instrument (PCI)”, whose objective is to help countries formulate and implement an agenda of macroeconomic policies and macrostructural reforms to prevent crises and build buffers against external shocks, and consolidate macroeconomic stability.
