In its last report, issued last April, Fitch Ratings maintained the country's credit rating in "BB", which leaves it just steps away from obtaining the investment grade. The report highlights that real GDP has increased 4.3% in 2017, which is the highest rate in South America and is above the average of countries with similar rating. Fitch's perspective is positive, projecting similar growth in 2018 and 2019 under the administration of the new government.
The debt / GDP ratio also remained lower than that of the other countries with a similar rating. Thanks to compliance with the Fiscal Responsibility Law, the Central Government's deficit of 1.4% of GDP was one of the lowest in the last two years. Likewise, the intention of the new Administration to reform the Judiciary and increase the efficiency of public offices is seen as a factor that might improve indicators of the country. In addition, some of the variables around the country's credit profile might improve after a forthcoming review of the increasing GDP data –since an improvement in nominal GDP would rise per capita GDP and reduce the debt / GDP indicator.
Fitch expects that a continuity of economic policies by the new Administration –with fiscal deficits and low debt levels, better governance indicators, in addition to solid and sustained GDP growth rates with lower volatility—will improve Paraguay's credit rating.