Analysts lower Uruguay’s growth forecast for 2023 to 1.8%

Uruguayan experts lowered the country’s economic growth forecast for this year to 1.80 percent from the 2.45 percent predicted last month, the Central Bank of Uruguay (BCU) informed today, Thursday.

According to the average of the entity’s expectations survey, the worsening of these came after last week the BCU disclosed that the Gross Domestic Product (GDP) expanded by 4.9 percent in 2022, although completing two-quarters of decline and entering into a technical recession.

The survey, which consults economists and financial sector institutions, showed a 0.50 percent increase in Gross Domestic Product (GDP) as the most pessimistic response in March and a 2.50 percent increase as the most optimistic.

The government of President Luis Lacalle Pou foresees an economic growth of around 2 percent for 2023.

On the other hand, analysts forecast inflation of 7.20 percent for 2023 and 0.72 percent for March, according to the BCU survey average.

Inflation accumulates an increase of 7.55 percent in the mobile year ending in February, above the official target range (3-6 percent).