Countries › Paraguay › Guide › 2. Macro and country context

2. Macro and country context: Paraguay

Argentina. For full detail on Argentina, go to The Argentine Thread.

Macro and country context for investors in Paraguay: the constitutional rules behind the Banco Central del Paraguay and its limits on financing the State, the charter that makes currency stability its first objective, the 3.5 percent inflation target and the policy rate, and the 2013 fiscal responsibility law with its 1.5 percent of GDP deficit cap, alongside the latest official figures from the Central Bank, the Ministry of Economy and Finance and the national statistics institute. For the Argentine side of trade, FX or tax questions see The Argentine Thread guide.

Investor view. Low inflation under an inflation targeting central bank, moderate public debt, two investment grade ratings and a legislated deficit ceiling make Paraguay one of the more predictable growth platforms in the region, provided the planned 2028 return to the fiscal rule is delivered.

Paraguay economy at a glance: central bank, inflation target, fiscal rule and key figuresParaguay's Constitution creates a technical central bank with the sole right to issue money and bars it from financing public spending outside the budget; its charter makes the stability of the guaran