Itaú BBA - Macro Scenario – Paraguay: New fiscal responsibility bill

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Macro Scenario – Paraguay: New fiscal responsibility bill

January 18, 2021

For 2021, we expect a broad-based growth of 4.0%.

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

• 
The government sent a bill to Congress proposing the maintenance of the limit for the fiscal deficit at 1.5% of GDP and a convergence by 2024.

• GDP recovered in 3Q20, in line with leading indicators. We maintain our estimate of a 1% drop in GDP for 2020 and a 4.0% gain for 2021.

• The recovery of economic activity and the rise in meat prices drove inflation up at the end of 2020. For 2021, we estimate inflation of 3.0%, from 2.2% in 2020.
 

Juan Carlos Barboza
Diego Ciongo


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



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