Paraguayans vote for continuity as economy purrs

Paraguay's business-friendly Colorado party will maintain its hold on power for another five years after presidential candidate Mario Abdo Benítez (pictured) was voted into office.

Abdo – whose father was a senior aide to former dictator Alfredo Stroessner – secured 46.44% of the vote with more than 99% of ballots counted.

His closest rival, Pedro Efraín of the liberal Ganar coalition, secured 42.74%, according to the country's electoral council.

Former senator Abdo will take the reins from Horatio Cartes, who took office in 2013 and enacted policies to contain public spending, fiscal responsibility laws and macroeconomic discipline.

Abdo, who takes office in August, campaigned on an anti-corruption platform and pledged to maintain Cartes' economic policies.

Moody's senior analyst Samar Maziad said: "Even though the results of Paraguay's election were much closer than anticipated by most, we expect the Benítez administration to broadly maintain policies in place. Paraguay has a strong track record of fiscally conservative policies, supporting our view that the country will keep low debt burdens."

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The Paraguayan economy grew at an average rate of 5% over the past decade, according to the World Bank, a trend that distinguished it from neighbors Brazil and Argentina.

Paraguay's central bank expects 2018 GDP growth to come in at 4.5%. Key exports are soy, beef and electric power. The country, however, is among the poorest in the region. In terms of GDP per capita, in 2016, Paraguay, with US$4,077, was ahead of only Bolivia, Honduras, Nicaragua and Haiti, according to World Bank data.

In a victory speech, Abdo said he would work for national unity.

"We're going to work with honesty, with integrity and with much sacrifice so that I, within five years, having given 100%, can walk on the streets and receive applause for a task completed..."

"We'll take a leading role in the construction of your future, of your country, of your nation."

Argentine President Mauricio Macri said on Twitter: "I've just been in touch with Mario Abdo Benítez, president-elect of Paraguay, to congratulate him on his victory. I hope we will shortly be able to work together for the wellbeing of our citizens."