Former Minister of Finance and economist César Barreto spoke about the expected economic prospects for the next governmentbearing in mind that on August 15 there will be a transfer of command between Mario Abdo Benítez, the incumbent President of the Republic, who will pass the baton to Santiago Peña, the President-elect.

In this context, Barreto gave an example, the current situation is economically positive, because after several years of crises due to pandemics and drought, Paraguay is going through a remarkable recovery period, which is favorable for the new government.

“Inflation is something that hits a lot of people, then the Central Bank of Paraguay (BCP) took the right steps, they decided to move forward by raising interest rates to control the amount of money and prices, also helped by commodity prices which started to rise. drop it. give it. Today’s inflation is basically within the BCP target, ahead of our expectations”, said Barreto at 10.00.

In this case, he also noted that The next government has “on the plate served” the possibility of reducing interest ratesif at the next BCP board of directors meeting no decision is made to reduce it gradually.

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The refinement section that Barreto mentioned highlights soybean production and exports which, according to the data he refers to, increase over the same period last year to date is 65%. “What clearly shows that the production is good, it is recovering. Were it not for that, the impact of the BCP rate would have been much stronger this year.”, he admits.

What Barreto commented on is that from a fiscal standpoint, Santiago Peña won’t have any positive space, ie The challenge will be to carry out the necessary reforms to allow the government to agree on a target rate of 1.5% of gross domestic product (GDP), under the fiscal responsibility law, and set other goals.

“Unfortunately not even the convergence plan set by the government will be fulfilled because elections have an impact. Public spending should have started to self-correct in the second half of last year and of course the first half of this year”, he commented.

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