Support will wane as COVID-19 expands in Paraguay

Significance

Health Minister Julio Mazzoleni said on August 28 that Paraguay was entering the “most difficult” stage of the coronavirus pandemic. On August 23 the government had reinforced lockdown measures, named ‘social quarantine’, in Asuncion and the surrounding central zone for just two weeks, but the rapid spread has forced a new extension.

Impacts

• Revelations of COVID-19-related corruption will undermine support for the government and adherence to lockdown restrictions.
• The government anticipates that coronavirus cases could peak in September or October.
• A forecast GDP contraction of only 3.5% reflects strong performance by the agriculture sector, notably soybean and meat exports.