Paraguay’s Central Bank Ups Growth Projections for 2024
No significant imbalances are observed that could divert inflation from the expected trajectory, the BCP stated
Paraguay’s Central Bank (BCP) has raised the country’s economic growth projection for 2024 to 4% from the initial 3.8%. Noteworthy upward revisions were seen in the livestock, trade, and tax sectors, while adverse weather conditions slightly impacted electricity and water projections. Despite the challenges, the BCP remains optimistic about Paraguay’s economic performance.
The livestock sector saw a significant increase in projections due to a higher slaughtering rate, while trade dynamics exceeded expectations. However, lower export forecasts and reduced electricity sales abroad slightly affected the overall trade balance. Amidst these fluctuations, domestic consumption continues to grow steadily.
With inflation projections remaining stable at 4%, the BCP foresees a positive trajectory for the country’s economy in 2024, with strong investments in machinery and equipment driving gross fixed capital formation. Paraguay’s economic prospects seem promising, supported by the positive performance of various sectors.