Brazil’s economic study highlights Paraguayan expansion

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According to the new projections of the Brazilian Center of Economic Studies Fundación Getulio Vargas, Paraguay will grow the most this year, with an expansion of 3.9%. Uruguay and Mexico follow. Another positive fact for Paraguayans is that the country remains in an area considered favourable for business.

According to the indicator released yesterday, the business climate in Latin America reached its best level in the first quarter of 2024 in the last 11 years.

The so-called Economic Climate Index (ICE) of Latin America, which the FGV produced with surveys of 103 specialists from 10 countries, jumped from 73.4 points in the first quarter of 2023 to 102.0 points in the last quarter of last year and reached 107.2 points in the first quarter of this year, EFE published.

This is their best level since the first quarter of 2013 (109.8 points). In addition, this was the first time since 2018 that the index remained two consecutive quarters within the so-called favourable zone (more than 100 points).

According to the FGV, the improvement in the first quarter was driven by a good assessment of Brazil, the largest regional economy, whose indicator rose from 100 points in the last quarter of 2023 to 114.6 in the first quarter of 2024.

Paraguay in the favourable area

The business climate improved in all countries of the region except Mexico, where 27.5 units fell to 114 points, and Chile, where it regressed 7.9 units to 72.7 points. Despite the worsening, Mexico remains in the area considered favourable alongside Paraguay (154,6 points), Uruguay (139.4 points), and Brazil (114,6 points).

The other countries are considered unfavourable (below 100 points) despite the increase in their indicators: Peru with 85.3 points, Colombia with 72.8 points, Chile with 72.7 points, and Ecuador with 42.2 points.

Paraguay is the country that will grow the most, according to the projections

The country that will grow the most this year, according to the new projections, is Paraguay, with an expansion of 3.9%, followed by Uruguay (3.2%), Mexico (2.8 %), Peru (2.4 %), Bolivia (2.3%), Brazil (1.9%), Chile (1.6 %), Colombia (1.3%) and Ecuador (1.0%). The only country in which growth is expected to retract is Argentina, for which a decline in GDP of 2.9% is projected.

Argentina in negative

Argentina’s indicator Argentina rose from 26.1 points to 41.7 points with the first economic measures announced by President Javier Milei, and that of Bolivia, which remains in last place, rose slightly from 18.9 to 20.8 points.

According to the study, the improvement in indicators reflected the upward revision of the projections for 2024 GDP growth in three of the region’s countries: Uruguay, Chile and Peru.

The forecast for Latin America’s economic growth in 2024 overall was reduced from 1.8% in last year’s last quarter to 1.6% in the first of this year.

Source: ABC PY

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