Uruguay’s Economy Set for Strong Rebound in 2025
After a tumultuous 2022 and 2023, Uruguay is finally bouncing back economically. The International Monetary Fund (IMF) predicts that the country will see a strong rebound this year, with a projected growth rate of 3.7%. This surge in economic activity is driven by a surge in agricultural exports, which are expected to increase significantly in the coming years. Additionally, UPM is projected to increase cellulose production, which will contribute to further growth.
Despite facing challenges during the historic drought of 2022 and 2023, Uruguay has shown resilience and is now set for positive growth in the coming years. The easing of financial conditions and robust private consumption due to salary updates have helped spur economic recovery. However, inflation is expected to rise in the second half of 2024. In response, the Central Bank (BCU) is gradually easing monetary policy rates to support economic growth.
The IMF emphasizes the importance of continued vigilance of monetary policy to build credibility and support efforts to de-dollarize the economy. As political scandals and leadership succession continue to plague Uruguay, it remains uncertain what lies ahead for the country’s future economic prospects. Nevertheless, with these positive forecasts and continued efforts from the government and private sector, Uruguay may be on track for a strong recovery in the years to come.
Inflation Expected to Increase in Second Half of 2024
The Central Bank (BCU) has announced that inflation is expected to increase in the second half of 2024. To address this issue, BCU has gradually eased monetary policy rates as it supports economic growth while maintaining price stability.
The International Monetary Fund (IMF) emphasizes that continued vigilance on monetary policy is crucial to building credibility and supporting efforts to de-dollarize the economy.
President Luis Lacalle Pou’s Term Comes to an End
As President Luis Lacalle Pou nears the end of his term in office, Uruguay faces political challenges such as scandals and competition for leadership succession. However, with these positive economic forecasts and continued efforts from various sectors, there remains hope for a strong recovery in