Economy & Business - July 2022

PARAGUAY | New economic measures announced. Paraguay’s President Mario Abdo Benítez announced a series of economic and social measures on 6 July, with the aim of alleviating the impact of global inflation and a drought that has hit the local agricultural sector. According to Paraguay’s central bank (BCP), monthly inflation stood at 0.5% in June bringing annual inflation to 11.5% for that month. Speaking in a press conference, President Abdo Benítez said that measures include capping the price of public transport until the end of the year and making social benefits available to 17,000 more recipients in Paraguay. The president has also made US$1.1m available in public investment to create 50,000 new jobs and build 2,800 houses for vulnerable families. A reduction on VAT to 5%, introduced in 2020, will be maintained as will the reduction in the Impuesto Selectivo al Consumo (ISC) sales tax to reduce the impact of the rise in fuel prices. As well as outlining government measures, Abdo Benítez highlighted that “private investment will complement the efforts of the public sector”. The measures are intended to limit the effects of inflation in the second half of the year.

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