The Central Bank of Paraguay published a summary of the International Monetary Fund's concluding statement for the 2026 Article IV consultation, emphasizing the IMF's assessment that Paraguay's economy remains resilient and supported by strong macroeconomic fundamentals. The IMF pointed to solid economic growth underpinned by a credible inflation-targeting regime, a flexible exchange rate and high international reserves, and said inflation is expected to converge to target in 2026 with expectations remaining anchored despite the energy shock linked to the conflict in the Middle East. On the financial sector, the IMF said financial soundness indicators and stress tests continue to point to a solid and resilient banking system. It added that developing a set of macroprudential tools would strengthen the authorities' ability to contain vulnerabilities. The IMF also noted that Paraguay's growth has been largely insulated from the effects of the war in the Middle East because electricity generation is fully renewable and soy production and prices have evolved favorably. For the medium term, it said stronger investment inflows, supported by Paraguay's investment-grade rating and opportunities in renewable energy and artificial intelligence, together with productivity gains from structural reforms and large-scale investment, could lift growth further.
Central Bank of Paraguay2026-07-02
Central Bank of Paraguay highlights IMF Article IV assessment of resilient economy and solid banking system
The Central Bank of Paraguay highlighted the IMF's 2026 Article IV assessment that Paraguay's economy remains resilient, with solid growth supported by inflation targeting, a flexible exchange rate and high reserves. The IMF also said the banking system remains solid based on financial soundness indicators and stress tests, while noting that a broader macroprudential toolkit would help contain vulnerabilities. Medium-term growth could also benefit from stronger investment inflows and productivity gains.