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Political Risk / Paraguay

Political Risks Still High

July 2011 | Political Risk Analysis

Paraguay's political risk profile will continue to suffer as President Fernando Lugo's ongoing lack of support within government comes to the fore, prompting us to downgrade our proprietary short-term political risk rating to 46.3, from 47.1 previously. While high inflation and anti-government guerrilla activity remain a concern, tensions within the ruling coalition now pose the most prominent short-term risk to the country's economic performance.

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