Paraguay: Fifth Review Under the Stand-By Arrangement: Staff Report; Press Release on the Executive Board Discussion; and Statement by the Executive Director for Paraguay
Volume/Issue:
Volume 2008
Issue 180
Publication date: June 2008
ISBN: 9781451832549
$20.00
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Topics covered in this book
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Banks and Banking , Inflation , Economics- Macroeconomics , Money and Monetary Policy , Public Finance , ISCR , CR , prudent fiscal policy , surplus , authority , SDR , fiscal policy , rate of return , transfer program , fiscal authorities , headline inflation , program GDP ratio , Public sector , Inflation , Public enterprises , Currencies , Global
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Summary
The rebound in inflation since mid-2007 is mostly owed to a jump in food prices in Paraguay. The price volatility of fruits and vegetables explains the divergence between headline and core inflation indicators observed in 2007. Following a decline that started in 2006, core inflation has risen in the second part of 2007. High export volume growth, coupled with a slowdown in import growth, have led to a turn around in the current account from a small deficit in 2006 to a surplus of about 1 ½ percent of GDP in 2007.
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