Uruguay Economic Outlook
June 14, 2022Growth appeared to pick up in Q1. Agricultural prices, which hit levels not seen since 2008, led year-on-year export growth to average 35.1% in the quarter. Private consumption probably weathered the Omicron wave relatively well—the country has one of the world’s highest vaccination rates. This said, lingering Covid-19 restrictions and rising inflation will have capped spending. Turning to Q2, the government loosened Covid-19 restrictions in April, boosting economic activity. It also cut taxes and raised public sector pensions and wages that same month, supporting consumption at the expense of a wider fiscal deficit. In other news, the IMF concluded its visit on 3 June, and voiced support for short-term targeted measures to shield the economy from higher inflation. The Fund also stressed the importance of continued fiscal consolidation.
Uruguay Economic GrowthThe economy’s expansion will be above its long-term pre-pandemic average this year. Elevated prices for agricultural commodities will strengthen the external sector, while looser Covid-19 restrictions should support domestic demand. Given that a recent referendum to block the president’s pro-market reforms only narrowly failed, further challenges to the president’s agenda pose risks. FocusEconomics analysts see the economy expanding 4.0% in 2022, which is up 0.2 percentage points from the previous month’s forecast. In 2023, our panel estimates growth of 2.7%.
Uruguay Economy Data
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|Exchange Rate||37.33||0.24 %||Jan 01|
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Uruguay Economic News
November 15, 2022
On 15 November, the Monetary Policy Committee of the Central Bank of Uruguay (BCU) increased the policy rate from 10.75% to 11.25%.
November 11, 2022
Industrial production expanded 2.7% year on year in September (August: +9.3% yoy).
November 4, 2022
Inflation eased to 9.0% in October from September’s 9.9%.
October 12, 2022
Industrial output increased 9.3% year on year in August (July: -1.0% yoy).
October 6, 2022
On 6 October, the Monetary Policy Committee of the Central Bank of Uruguay (BCU) increased the policy rate from 10.25% to 10.75%.