Investment To Fore As C/A Deficit Widens

BMI View: Although strong inflows into Paraguay's financial account helped to mask the country's deteriorating trade dynamics in Q309, we caution the country could face increasing balance of payments difficulties going forward. With the current account deficit set to widen to 5.3% of GDP in 2010, the financial account surplus will need to grow concomitantly if the country is to avoid a draw-down in its international reserves.

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