Paraguay - Current economic position and prospects

RESTRICTED Report No. WH- 190c This report was prepared for use within the Bank and its affiliated organizations. They do not accept responsibility for its accuracy or completeness. The report may not be published nor moy it be quoted as representing their views. INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT INTERNATIONAL DEVELOPMENT ASSOCIATION CURRENT ECONOMIC POSITION AND PROSPECTS Or PARAGUAY June 2, 1969 Western Hemisphere Department  CURRENCY EQUIVALENTS U. S. $1.00 = 126 Guarani (a) a 1 U.S. $0. 008 a 1, 000, 000 U.S. $7, 936. 50  TABLE OF CONTENTS Page No. BASIC DATA i- ii SUMMARY AND CONCLUSIONS i- v I . REGENT DEVELOPMENTS AND CURRENT PROSPEGTS 1 II. THE FINANCING OF FUBLIC INVESTMENTS 7 III, BALANCE OF PAY{ENTS SITUATION AND PROSPECTS 21 STATISTICAL APPENDIX This report is the result of an economic mission which visited Paraguay in September-October 1968 and of further discussions with the Government in February 1969. The mission consisted of Mr. Peter Reitter (Chief of Mission), Mr. Carlos Quijano and Mr. Anthony Ternent. It was also assisted by Mr. R. Hewson and Mr. E.FOJ. Quicke, consultants (FAO), and by Mr. Alberto Favilla.  BASIC DATA Area 157,052 sq. miles Population (1968 est.) 2.2 million Average annual rate of increase, 1960o-1968 3.1 percent GDP at Current Market Prices (1965 est.) 06h,529 million Average annual growth rate, 1962-1968 4.5 percent Per capita GDP (1968 est.) US$214 GD? by Industrial Origin 1962-1964 1966-1968 Agriculture 37.3 33.6 Manufacturing and Mining 15.9 15.6 Construction 2.3 3.0 Services 44.5 47.8 Savings and Investment as % of GNP Gross Domestic Capital Formation 11.9 17.0 Gross National Savings 9.2 12.2 Net Capital Inflowi (incl. transfers) 2.7 4.8 Public Sector Finances 1966 1967 1968 (0 m1T11ons) Capital Outlay 3,642 4,919 5,100 Current Account Surplus 1,653 1,545 1,159 Capital Income 261 229 326 Net External Financing 1,203 1,862 2,560 Net Internal Financing 525 1,283 1,055 Money Supply 0 Million % Change % of National Income 1963 3,695 8.7 1964 4,548 23.1 10.2 1965 4,953 8.9 10.2 1966 5,026 1.5 10.0 1967 5,221 3.9 10.2 1968 (est.) 5,651 8.2 10.0 Balance of Payments 1966 1967 1U$ i8 (US$11lilion ) Current Account -16.0 -22.1 -25.8 Exports 61;7 60.2 7 Imports -75.2 -77.0 -84.5 Other - 2.5 - 5.3 - 4.2 Amortization - 1.2 - 1.8 - 4.-  1966 1967 1968 GzoaC_Sa~ital Inflow 17.2 23.9 30.0 Private iong-term capital (net)