Paraguay's fiscal crossroads: the deficit is projected at 3.2% of GDP in 2026 and up to 3.9% in 2027, with the 1.5% legal cap postponed to 2028.
Paraguay · ECONOMY
Key Facts
—What happened The MEF projects deficits of 3.2% of GDP in 2026 and up to 3.9% in 2027, with the 1.5% legal cap postponed to 2028.
—How big A one-year correction from 3.9% to 1.5% equals 2.4 percentage points of GDP, roughly US$1.5 billion.
—The catch H1 2026 tax revenue grew 2.4%, well below the 8.5% official forecast, and arrears to suppliers exceed US$1 billion.
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