Economic growth expected to slow in 2019 to 2.5% due to weather issues and sluggish growth in Brazil and Argentina Overall policy continuity in the first year of President Mario Abdo Benitez's mandate, but execution is still weak Overall frail institutions that limit policymaking effectiveness Prudent fiscal policies in line with the fiscal responsibility law (FRL) that should keep changes in net general government debt around 2% in 2019-2022 External sector should remain strong despite temporary supply and demand shocks Well-anchored inflation expectations, though limited monetary policy flexibility due to a dollarized economy The stable outlook reflects our expectation that in the next two years Paraguay will continue to post economic growth despite some temporary external and domestic shocks, owing
