Economist proposes raising Paraguay's debt to 70% of GDP

Economist Sergio Sapena proposes that Paraguay significantly increase its public debt to approximately 70% of its GDP to fund infrastructure and accelerate economic growth. He argues that the current debt level, which is near 35% of GDP, is too low to support necessary development.

Sapena suggests that issuing approximately USD 2 billion in bonds annually over the next five years would provide the necessary backing for monetary issuance by the Central Bank of Paraguay. He advocates for a fiscal deficit of around 6% of GDP, criticizing current government targets of 3.2% to 3.9% as insufficient to overcome the country's developmental delays. He maintains that such debt is a tool for financing essential works like schools, hospitals, and roads rather than a burden for future generations.