GDP growth projection for the year adjusted upwards
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Loading... - Willow Cook
- 20 Sep 2024
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Economists have revised Paraguay's GDP growth projection upwards, now anticipating a 4% expansion for both 2024 and 2025, according to the Central Bank of Paraguay’s latest Economic Variable Expectations (EVE) report. This marks an adjustment from the previous estimate of 3.9% for 2024.
However, inflation is expected to exceed the 4% target set by the central bank, with projections reaching 4.2% by the end of 2024. Inflation expectations for 2025, as well as for the next 12 months and the broader monetary policy horizon (18-24 months), remain anchored at 4%. Despite concerns over year-on-year inflation and a rising dollar, central bank technicians believe the 4% inflation target is still achievable due to stabilizing factors in sectors like fruits and vegetables.
Regarding the monetary policy rate (TPM), economic agents predict it will hold steady at 6.00% for both September and October but foresee a potential reduction to 5.50% by the end of 2025. Central bank officials noted that future rate cuts are possible, contingent on the behavior of the U.S. interest rate and other economic indicators.
