The process of rapid convergence experienced by inflation in this period of the year resulted Good expectations for economic players, who even cut their predictions for the end of the year. At that time, even now they project the first cut in the Monetary Policy Interest Rate (TPM) for next month.

According to the August 2023 Economic Variable Expectations Survey (EVE), the median expectations Monthly inflation was 0.2%, lower than recorded in August 2022although slightly lower than shown in July for the current period. For September, the agency forecast monthly inflation of 0.3%.

For annual inflation, built from the average monthly inflation expectations, it yields a value of 3.1%. Besides that, average inflation expectations reported by agents for year-end were at 4.1%below the 4.5% expected in the previous month.

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Regarding median economic growth expectations, respondents estimate an average Gross Domestic Product (GDP) growth of 4.5% for 2023 and 4.0% for 2024. These expectations remain anchored by the projections made by the Central Bank of Paraguay (BCP).

On the other hand, it is important to mention that those surveyed, considering the country’s overall economic improvement, they expect the first cut in the Monetary Policy Rate (TPM) for next month, putting it at 8.00 basis points, while for the year they kept it at 8.50 points. By the end of 2023, they predict it will be at 7.25 basis points.

Referring to the evolution of exchange rates, agents’ hope is for the month of August to close at the level of G.7.290, slightly lower than reported in the previous month. For September, they forecast a G.7,300 exchange rate, a level also expected later this year.

In detail: “We really need to get the economy moving again”, said the Minister of Manpower after taking office