Central Bank of Paraguay (BCP) President Carlos Carvallo assured that the Paraguayan economy currently has robust macroeconomic 'cushions' to face an international scenario marked by volatility, geopolitical conflicts, and global inflationary pressures. The statement was made during the 56th General Assembly of the Latin American Association of Development Financing Institutions (Alide), held in Asunción.
Carvallo highlighted that the country arrives in this context with solid fundamentals: controlled inflation, financial stability, and balanced macroeconomic policies. 'In the face of a more unpredictable world, it is necessary to offer greater predictability,' he said. The BCP head stressed that uncertainty remains the main characteristic of the global economy, affected by international conflicts, logistical disruptions, and greater volatility in financial markets.
According to Carvallo, the Paraguayan economy has shown resilience despite external deterioration. The country recorded growth of 6.6% last year and an average expansion of 5.5% over the last three years, driven mainly by domestic demand and investments. For 2026, the BCP projects expansion of 4.2%, but Carvallo acknowledged that economic activity surprised positively in the first months of the year. The Monthly Indicator of Economic Activity (IMAEP) grew 8.2% in March year-on-year and accumulated an increase of 4.7% in the first quarter.
In the inflation area, Paraguay closed last year with inflation of 3.1% and an average of 3.5% over the last three years, within levels considered consistent with macroeconomic stability. Carvallo said that monetary policy is already in neutral territory and that the country has room to absorb external impacts, including in the face of possible international increases in oil and fuel prices.
The BCP president also defended the credibility and autonomy of the Central Bank as pillars of economic performance, highlighting that inflation expectations remained anchored even during the most critical moments of post-pandemic global inflation. Finally, he stressed that the investment grade achieved by Paraguay and the reduction in country risk represent international validation of the consistency of economic policies implemented in recent years.