Análisis estratégico sobre institucionalidad, economía y desarrollo publicados en medios especializados.
Fiscal stability safeguards the economy, but it is not enough. In this third installment of our series, we analyze how low public investment slows the growth multiplier and prevents fiscal soundness from translating into formal employment.
Latin America has spent decades trapped in a cycle of disappointing economic growth that contrasts sharply with its enormous potential. The World Bank projects the regional economy will expand by only 2.1% in 2026, the lowest rate among global regions.
We celebrate having achieved investment-grade status, but what comes next? If we look at neighboring countries like Chile and Uruguay, we realize that international recognition only bears fruit if we build strong institutions and clear rules. That is the bridge we need to cross so that the economy’s strong numbers translate into better jobs, education, and real opportunities for all Paraguayan families.
Lower-income households in Paraguay are not feeling the relief from the low overall inflation rate of 2.7% because the BCP’s macroeconomic figures mask the reality faced by vulnerable families. Low-income families spend between 55% and 65% of their income on basic necessities with very inelastic prices. While overall inflation is falling, the food and beverage subindex is adjusting much more slowly.
Our country has established an enviable macroeconomic framework with a double investment grade, but this achievement will remain nothing more than a decorative title if we do not take the next institutional step. In my analysis, I outline three structural reforms—which are low in fiscal cost and have a high multiplier effect—that are necessary to boost real investment.
Architect of Latin American economic development.
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