Uruguay Current Account Swings to US$460 Million Deficit in Q2 2026
Uruguay current account swung to a US$460 million deficit in Q2 2026 as the goods surplus shrank, central bank data show. The 12-month gap is 0.8% of GDP.
URUGUAY · ECONOMY
Key Facts
- —The country Uruguay, a country of about 3.5 million people between Brazil and Argentina, lives largely from beef, pulp and soybean exports.
- —The background The current account is the broadest measure of a country’s dealings with the world: trade in goods and services plus income such as profits and interest. Uruguay usually runs a goods surplus but pays out large profits to foreign investors.
- —Why now The Banco Central del Uruguay (BCU), the central bank, published its balance of payments report for the second quarter of 2026 this week.
- —What happened Uruguay’s current account showed a deficit of US$460 million in April to June 2026, against a surplus of US$42 million a year earlier, according to preliminary BCU figures.
- —The numbers The goods surplus shrank by US$422 million to US$508 million as imports grew faster than exports. Over the 12 months to June, the deficit was US$689 million, or 0.8 percent of GDP.
- —What it means for you Over a full year the gap is about 0.8 percent of GDP, small relative to the economy. It reflects a weak harvest and strong spending on imports.
- —Still open The figures are preliminary and can change: the first-quarter result was revised from a small surplus to a deficit in this report.
The Uruguay current account swung to a deficit of US$460 million in the second quarter of 2026, central bank figures show. In the same quarter of 2025 it had a surplus of US$42 million.
A shrinking goods surplus drove the change, as a poor summer harvest cut farm output while imports rose. Over the past year as a whole, the deficit is still under 1 percent of GDP.
What the central bank reported
The BCU put the second-quarter current account at minus US$460 million. Its small capital account was zero in the quarter, so the combined current and capital account was also minus US$460 million.
A year earlier the combined figure was a surplus of US$46 million.
The bank also revised the first quarter of 2026 to a current-account deficit of US$28 million. Its first estimate, in July, had been a US$45 million surplus.
Where the money went
Uruguay still sold more goods than it bought, with a goods surplus of US$508 million. But that was US$422 million less than a year earlier, because exports grew 2.5 percent and imports 16.6 percent.
Services, including tourism and transport, added a surplus of US$221 million, also smaller than a year before. Service imports grew 9.0 percent, outpacing exports at 4.5 percent.
The largest outflow was primary income, mainly profits and interest paid to foreign owners and lenders. It reached minus US$1,231 million, US$42 million more than a year earlier.
Secondary income, such as remittances, added US$41 million.
Why it turned
The economy shrank 0.5 percent from a year earlier in the second quarter, the BCU said. Value added in farming, fishing and mining fell 22.2 percent after poor yields from the summer crops.
At the same time household spending rose 2.6 percent, and trade in imported goods such as vehicles grew. Weaker farm exports and stronger imports together squeezed the goods surplus.
The data arrive as the IMF has cut its 2026 growth forecast for Uruguay to 1.3 percent.
How it was financed
The financial account showed net borrowing from abroad of US$41 million in the quarter. Unrecorded flows, listed as errors and omissions, added a positive US$419 million.
The central bank’s reserve assets fell by US$850 million in the quarter’s transactions. At the end of June, Uruguay’s net international investment position was minus US$16,494 million, or 18.3 percent of GDP.
What comes next
Over the 12 months to June, the current-account deficit was US$689 million, or 0.8 percent of GDP. The BCU says that share is practically unchanged from a year earlier.
One weak quarter does not signal an external crisis; the gap is modest and comes mainly from a smaller goods surplus after a bad harvest. Nor is it the same as the monthly trade balance, which covers goods only.
Frequently Asked Questions
What is the current account?
It is the record of a country’s transactions with the rest of the world in goods, services and income. A deficit means the country paid out more than it received, and had to be financed by borrowing or investment from abroad.
Why does Uruguay pay so much primary income abroad?
Foreign investors hold about US$57.5 billion of direct investment in Uruguay, from pulp mills to banks, according to the central bank. Their profits and the interest on foreign debt flow out as primary income, about US$1.2 billion in the second quarter of 2026.
Is a US$460 million deficit large for Uruguay?
Not by itself. Over the 12 months to June the current-account deficit was US$689 million, or 0.8 percent of GDP, which the central bank says is practically unchanged from a year earlier.
Sources: Banco Central del Uruguay, Balance of Payments and International Investment Position report, second quarter 2026 (preliminary figures; Cuadros 1, 2 and 3), Ámbito, first-quarter estimate, 2 July 2026. All retrieved 2 October 2026.
This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error · Editorial responsibility: Matthias Camenzind, Editor-in-Chief
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