Asunción, Agencia IP.- The Central Bank of Paraguay has upheld its 4% growth forecast for this year, as reported following the October meeting of the Monetary Policy Committee.
«The GDP is close to its potential levels, and the effects of the local currency depreciation have been limited,» states the report from the Central Bank.
The Committee highlights that short-term indicators have continued to improve, leading to an upward adjustment of the 2024 GDP growth forecast from 3.8% to 4.0% in the September report.
This expectation by the Central Bank of Paraguay (BCP) is more optimistic than the forecast by the International Monetary Fund, which, in its latest report, predicted 3.8% growth for Paraguay’s economy.
In terms of inflation, considering that trend measures and expectations remain in line with the target, the inflation forecast has also been kept at 4.0%.
The Committee notes that no significant risks are currently expected to deviate inflation from the projected path. On one hand, there has been a reversal in price increases for volatile components of the Consumer Price Index (CPI) basket.
On the other hand, risks have moderated in the external environment, particularly with recent declines in food and energy commodity prices.
The Monetary Policy Committee reaffirms its commitment to price stability and will continue to monitor both internal and external developments closely. It aims to anticipate their possible effects on inflation trajectory and take timely measures to ensure the 4% target is met within the monetary policy horizon.