Navigating through Challenges: Uruguay’s Economic Outlook amid Political Scandals and Inflation Concerns
As the end of President Luis Lacalle Pou’s term approaches, Uruguay is facing economic challenges with hopes for a strong recovery. Despite a historic drought in 2022 and 2023, the country has seen an economic rebound, driven by a surge in agricultural exports and balanced macroeconomic risks. The International Monetary Fund (IMF) predicts that Uruguay will experience a 3.7% growth this year, with an increase in cellulose production by UPM and the recovery of real wages projected to be 2.9% by 2025.
The Central Bank (BCU) is gradually easing interest rates to support economic growth, but inflation is expected to increase in the second half of 2024. Amidst political scandals and competition for leadership succession, Uruguay is navigating through these challenges with hopes for a strong rebound.
