Bright future ahead for Paraguay's economy

Tuesday, October 26th 2021 - 20:05 UTC

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Tax revenues are expected to grow around 12% to further feed Paraguay's coffers

Paraguay's Treasury Monday forecast economic growth of 4.5% by the end of 2021, it was announced.

Despite the unprecedented optimism, the Ministry of Finance authorities were cautious and kept repeating to themselves and their staff that these projections were to be read with the suffix “COVID permitting,” meaning anything can change overnight in case of a new outbreak of the disease.

Also threatening the positive results were the downspout of the rivers and the historic drought.

Ministry sources said the economic prospects were positive and figures were good at the end of the first two-quarters of 20021 for the Central Bank of Paraguay (BCP). That data in addition to other indicators yielded a projection of a 4.5% growth for the end of 2021.

In this scenario, tax revenues are expected to grow around 12%, which would prove economic activity is recovering.

But the pandemic is not over and the weather situation is not to be overlooked, the authorities believe, and possible variations are already included in the General Budget bill, which will hopefully pass unchanged through Congress.

In the meantime and as if to capitalize on tailwinds, Industri and Commerce Minister Luis Castiglioni has started talks with Qatari authorities to boost bilateral trade and lure attract investments from the Arab country to Paraguay.

Castiglioni Monday posted on Twitter that “I have just finished a successful visit to Qatar, where I met with the Prime Minister, the Minister of Commerce and Industry and the President of the Chamber of Commerce. We started an agenda to boost commercial exchange and attract investments from Qatar to Paraguay!”

Qatar is one of the countries which have donated COVID-19 vaccines to Paraguay.

Categories: Economy, Politics, Mercosur, Paraguay.

Tags: Central Bank of Paraguay, COVID-19, economic growth, Luis Castiglioni.

Top Comments

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Pytangua
What a sick Joke - the GDP of Paraguay may rebound on the back of soybean and meat exports but dire poverty for the rural poor is the worst it has been for a decade at the moment. But this is of little concern to the muppets at the central bank who view the 'economy' as divorced from the welfare of human beings.
Oct 27th, 2021 - 11:17 am 0
Pugol-H
Yes, you can forget the GDP for the moment, if the river level doesn’t at least stop falling then everything else is irrelevant.

Next, you need to worry about the drought.

Blame Argentina, their leading role in the war of the triple alliance (A vicious colonial war of conquest) which devastated Paraguay, led directly to the country’s current inability to withstand these shocks.

Not least the theft of the most fertile territories of the country, hence the disproportionate effect of the drought.

Now you know why when they turn up in the S. Atlantic, we kick them out.
Oct 27th, 2021 - 10:35 pm 0

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