Itaú BBA - Macro Scenario - Paraguay: Drought curbs economic growth

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Macro Scenario - Paraguay: Drought curbs economic growth

May 17, 2019

The decline in activity was caused by a weaker agriculture performance.

For the full version with all charts and tables, please open the attached pdf file

 

• The drought affected the soybean crop as well as economic activity. Following the latest growth forecast revision in Brazil, we reduced our GDP growth forecast to 3% (from 3.5% in our previous scenario).

• The central bank kept the monetary policy rate unchanged at 4.75%. We do not expect changes in the monetary stance for the remainder of this year or the next. Our YE19 inflation forecast stands at 4%, in line with the BCP’s target. 

 

Juan Carlos Barboza
Diego Ciongo


 

For the full version with all charts and tables, please open the attached pdf file



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