Political effectiveness is worsening in the second year in office of the president, Horacio Cartes. A governability pact is still in place, but opposition to Mr Cartes's agenda is growing within his own party, the Partido Colorado.
The Economist Intelligence Unit believes progress on an ambitious reform agenda, including public-sector reform and investment in infrastructure and human capital, will slow as the powerful Congress becomes less co-operative.

Highlights 7

Political outlook 8

Economic policy outlook 9

Economic forecast 11

Annual data and forecast 15

Quarterly data 16

Monthly data 17

Annual trends charts 18

Monthly trends charts 19

Comparative economic indicators 20

Basic data 21

Political structure 22

Politics 23

Economy 30

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