Brazilian institute highlights Paraguay for the best economic climate for 2023
A study released by the Brazilian Institute of Economy, a branch of the Getúlio Vargas Foundation (FGV), reveals that Paraguay presents favorable indicators to address a 2023 expansion.
However, they point out that corruption, poor infrastructure and a lack of innovation continue to be brakes that slow down development.
Specialists from the institution applied measurement instruments that allow determining the degree of reliability presented by the different items projected from 2020 and measured by quarters.
These data reveal that Paraguay presents good indicators that would lead to an expansion by 2023, growth of the Gross Domestic Product (GDP), presenting one of the best economic climates and immediate expectations in the economic field.
These studies show that the Economic Climate Index (ICE) forecast for the fourth quarter is 114.7 points, while the Expectations Index (IE) stands at 171.4 points, both indicators considered the highest in Latin America, well above the fellow members of Mercosur.
Likewise, the measurement reflects that our country has low levels of distrust measured by the same scale that goes from 1 to 100.
In this section are the Central Bank of Paraguay (BCP) with 11 points, the barriers to exports with 22 and inadequate debt management also with 22.
These figures allow us to deduce that the Paraguayan economy, beyond all factors, presents a favorable picture for expansion, despite the fact that 2022 closes with a rather low performance compared to the other countries of the continent.
For 2023, the GDP projection is presented as the highest in Latin America, which indicates that the economy will experience visible improvements compared to the region.
COUNTRY WEAKNESSES
According to the FGV study, Paraguay also has weak points that continue to hinder development. On a scale measuring distrust indices from 1 to 100, corruption peaked at 100 points, revealing the magnitude of the problem that has so far failed to be addressed with any prospect of success.
They mentioned that the item that generates concern in general is the low proportion of innovation, which on the same scale is located with 89 points, while inadequate infrastructure takes a total of 78 points and the lack of confidence in economic policy with 56 points, being also one of the highest.
With information from La Nacion
Key Facts
— Deep Dive
— For the complete picture, read our in-depth guide: Paraguay: Washington's Most Valued Ally in Latin America
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