Macroeconomic Forecast Paraguay

BMI View: Remittances sent to Paraguay by workers abroad fell by 6.6% year-on-year (y-o-y) in October, reflecting the ongoing consequences of weak external conditions on the domestic economy. While we expect a modest rebound in inflows in 2010, we caution that a stuttering economic recovery in the US and Spain (home to most Paraguayans working abroad) will likely keep remittances modest for the time being. This is reflected in our forecast for private consumption growth of just 2.3% in 2010, following an estimated 1.5% contraction in

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