The International Monetary Fund’s Executive Board concluded the sixth review under Paraguay’s Policy Coordination Instrument and the fourth and final review under the Resilience and Sustainability Facility arrangement. Completion of the reviews closes out both programmes and makes SDR 85.6 million (about USD 117 million) available for disbursement under the RSF. The IMF assessed Paraguay’s economy as resilient, with real GDP growth expected to remain robust in 2026 and beyond and inflation projected to reach the central bank’s 3.5 percent target in 2026. The external current account is expected to weaken in the short term due to foreign direct investment related imports but strengthen over the medium term as new exports come on stream, while reserves remain above adequacy thresholds; weather shocks were highlighted as a key downside risk. On fiscal policy, the authorities are working to reduce the fiscal deficit to 1.5 percent of GDP by 2026, alongside measures to strengthen tax collection, improve government efficiency, address public pension sustainability, and reinforce public financial management, while advancing reforms spanning governance and anti-corruption, domestic capital markets, civil service and public-sector oversight, tax administration, private pension fund supervision, property rights and investment facilitation, payment system digitisation, and disaster resilience. Decisions were taken under the Executive Board’s lapse-of-time procedure.

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