The positive outlook presented by Fitch offers several challenges that must be met as a sustained momentum for that allows improvements in GDP in an environment of low and stable inflation.

There is also another improve to be made: the business environment because Paraguay has lost ground in this indicator, ranking 4th place in Latin America.

When, in January 31, 2014, Fitch, one of the major rating agencies worldwide, changed the perspective of Paraguay to positive, it made ​​it clear that, if certain respects could be met a further increase in the country's rating may occur.

Currently, Paraguay note is "BB-", three steps below investment grade.

What are the positive aspects or Paraguay remarked by Fitch?

The economic activity has accelerated in recent years; perspectives for 2014 are positive with an average GDP growth of 4.9%, above the 4.5% originally planned.

Macroeconomic stability and growth play in favor of Paraguay, as well as the increasing of exports and the improving of the country's image abroad.

And what are the aspects to be improved?

The high dependence on commodities, corruption and the institutional weakness, the lack of infrastructure, transparency and social inequity also undermine economic takeoff.

What is the objective to be pursued by the Government?

To accelerate rating increases and get the investment grade before 2018, a position that underpin the economy internally and the country's image abroad.

In the region, countries with investment grade are: Chile, Peru, Colombia, Uruguay and Brazil.

The positive outlook presented by Fitch offers several challenges that must be met as a sustained momentum for that allows improvements in GDP in an environment of low and stable inflation.

There is also another improve to be made: the business environment because Paraguay has lost ground in this indicator, ranking 4th place in Latin America.

How is the region?

The region is with guarded prognosis, however, Paraguay is showing an important capacity for recovery in front of the weak economic conditions of its main trading partners, who happens to be its neighbors. Paraguay was able to find a quick solution to this problem, diversifying exports to make the commercial impact, minimal.

It is known that there is growing interest in Brazilian companies to open operations in the border with Paraguay; this could lead to a major maquila industry in a medium term, with significant progress in terms of foreign exchange and employment.

As the general prospect is positive, the sensitivity analysis does not anticipate an involution of the indicators that could lead to reduce the note, but for this to happen, the macroeconomic stability must be maintained, as well as the one of the financial sector, not to mention the fiscal side.