The president of Paraguay has stated that the economy is expected to expand at a rate of 4% in 2024, despite the recent decline in the price of soy

President Santiago Pena informed Reuters on Wednesday that Paraguay’s economy is on course to expand at a faster pace than anticipated this year, with a 4% increase. This optimistic forecast surpasses official projections and is despite the fact that the country’s primary export, soy, has experienced a decline in price.

Pena, who is 45 years old, predicted that the current central bank estimate of 3.8%, which is already among the highest in the region, would be exceeded.

From the presidential residence in the capital city of Asuncion, Pena expressed his confidence that the country will experience development exceeding 4%. He attributed this to the substantial investment and assistance provided to farmers to facilitate the shipment of exports.

He stated that the assistance will encompass the deepening of waterways that are required for the transportation of cereals that have been impacted by low river levels.

Pena anticipated that ratings agencies like S&P and Fitch would enhance the country’s sovereign debt rating in the early part of the following year as the economy continues to expand.

In July, Moody’s upgraded Paraguay’s rating to investment grade, attributing the decision to fiscal policy stability and state investments.

Pena, an economist who assumed office with the conservative Colorado party one year ago, disclosed that Paraguay is currently engaged in negotiations to become a member of the Organization for Economic Co-operation and Development (OECD) by the conclusion of his current term in 2028.