LatinNews Daily - 07 November 2025

*The International Monetary Fund (IMF) has concluded a visit to Paraguay for the sixth review under the Policy Coordination Instrument (PCI) and fourth review under the Resilience and Sustainability Facility (RSF). These were the final reviews under both arrangements, which began in 2022 and 2023 respectively. An IMF team visited Asunción from 27 October-5 November to discuss recent economic developments and policy implementation. The IMF’s Executive Board is expected to consider the reviews in January 2026. If approved, a disbursement of around US$178m will be made available. The IMF highlighted that Paraguay’s economic growth has remained strong “amid heightened global uncertainty” with GDP expanding 5.9% year-on-year in the first six months of 2025 “driven by robust performance in services, electricity, manufacturing, and construction”. In terms of demand, the IMF said that “strong private consumption and gross fixed capital formation underpinned the economic expansion”. The IMF expects Paraguay’s GDP to expand 5.3% in 2025 and to continue showing dynamism in 2026. The IMF noted that headline 12-month inflation stood at 4.1% in October, which it attributed to some food price pressures. It said headline inflation is projected at 4% by end-2025 and to reach the central bank’s target of 3.5% in 2026. The Fund added that reducing the fiscal deficit to 1.9% of GDP this year and 1.5% of GDP in 2026 “is critical to preserve macroeconomic stability and to put the public debt-to-GDP ratio on a downward trajectory over the medium term”. All in all, the IMF found that Paraguayan authorities continued to make “solid progress” with reforms under both the PCI and RSF.

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