Paraguay’s BCP President Declares Victory Over Inflation
Paraguay’s Central Bank President, Carlos Carvallo, delivered a reassuring message during the Expo Paraguay Brazil convention in Luque, stating that inflation was no longer a concern for the country. His statements were made at a panel discussion titled “Inflation, currency, and macroeconomic challenges, and the BCP’s strategic vision,” held at the South American Football Confederation’s headquarters.
In his address to the audience, Carvallo emphasized Paraguay’s long history of macroeconomic stability, highlighting that inflation has been successfully stabilized within the target range and is no longer a pressing issue for the nation. He attributed this achievement to the Central Bank’s post-pandemic efforts, such as increasing the Monetary Policy Rate (TPM) to mitigate inflationary effects, which subsequently led to a return to equilibrium with inflation levels currently at 3.6% as of October.
Key Points from Carvallo’s Speech:
- Paraguay’s inflation rate for October was reported at 0%, a significant milestone indicating successful management of price stability.
- Despite fluctuations in specific sectors such as fruits and vegetables, the overall food basket saw a 30% increase over the last three years.
- Carvallo emphasized the favorable conditions for long-term investments in Paraguay, citing low and controlled inflation levels, a robust financial system, and high solvency levels that provide a secure environment for investors.
- The BCP forecasts a 4% growth in Gross Domestic Product (GDP) for the current year, with inflation projected to remain below this level.
Looking Ahead: Challenges and Opportunities
Carvallo identified the primary challenges facing Paraguay’s economy as the need to enhance productivity and reduce debt levels. He observed that many countries are currently revising their macroeconomic and fiscal policies to address these challenges effectively.
The Expo Paraguay Brazil convention served as a platform for around 130 speakers from 600 companies, organized by the Paraguayan Industrial Union (UIP). The event underscored the collaborative efforts between Paraguay and Brazil to foster economic growth and strengthen business ties between the two nations.
In conclusion, Carvallo’s optimistic outlook on Paraguay’s economic stability and successful inflation management signifies a promising future for the country. The concerted efforts to maintain price stability, promote investment opportunities, and address key challenges position Paraguay as an attractive destination for sustainable growth and development in the region.
