Itaú BBA - Macro Scenario – Paraguay: The government plans to reduce the fiscal deficit gradually

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Macro Scenario – Paraguay: The government plans to reduce the fiscal deficit gradually

September 9, 2020

The budget bill aims to reduce the fiscal deficit to 4% of GDP in 2021, from an estimated 7% for this year.

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

The budget bill aims to reduce the fiscal deficit to 4% of GDP in 2021, from an estimated 7% for this year. This will require the approval of a fiscal convergence bill for 2024, because the current fiscal responsibility law sets the maximum deficit at 1.5% of GDP.

The acceleration of new cases of COVID-19 in August led to a moderation of plans for the gradual reopening of activities. We maintain our projection of a 3.5% decline in GDP for this year.

Juan Carlos Barboza
Diego Ciongo

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

 



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