Paraguay - Country Partnership Framework for the Period FY2027-2034 : Annex 4 - Selected Economic Indicators

Overview & Synopsis

Paraguay currently shows steady economic expansion with low and stable inflation, a narrowing external deficit, rising international reserves, and a declining public debt ratio, alongside moderate population growth and gains in real per capita income. In the coming years, the Bank will focus on sustaining broad-based growth by strengthening productivity and market integration in agriculture, promoting value addition and diversification in industry, and enhancing competitiveness and quality in services. Support will prioritize macro-fiscal stability through improved public financial management, revenue mobilization, and more efficient public investment. The Bank will also foster a stronger external position by advancing export competitiveness, trade facilitation, and a more conducive environment for foreign direct investment, while encouraging deeper financial sector development to channel long-term financing to firms. Complementary efforts will target infrastructure and logistics improvements that reduce costs across value chains, as well as skills development aligned with labor market needs to raise productivity and employment in services and industry. Together, these measures aim to consolidate stable growth, bolster resilience, and translate expanding gross domestic product into inclusive, sustainable gains in living standards.