Entrepreneurs in Uruguay express confidence in the business environment, according to a survey by Exante.
The study involved 300 high-ranking officials from local companies. A vast majority, 85%, see the business climate as “good” or “very good.”
The survey paints a picture of optimism in the business sector. Even so, it hints at potential economic headwinds.
These challenges stem from global financial tightening and competitive struggles against regional peers.
The recent drop in inflation rates has led to better inflation expectations among entrepreneurs.
Half expect inflation to stay below the 6% threshold. Still, 40% of respondents plan to keep their current pricing strategies into the next year.
This indicates ongoing concerns about inflation’s persistent effects on economic strategies.
President Luis Lacalle Pou’s government anticipates a 1.3% economic expansion for 2023, followed by 3.7% growth in 2024.
Background
The positive outlook among Uruguayan entrepreneurs follows a broader trend. Uruguay has long been seen as a stable economy in South America.
Its strong institutions and solid economic policies have contributed to this perception.
Historically, Uruguay has fostered a favorable environment for business and investment.
The country has implemented policies that support free trade and offer robust legal protections for investors.
In recent years, Uruguay has diversified its economy. It has shifted from a reliance on agriculture to a more varied mix of services and industries.
This shift has attracted foreign investment and increased competitiveness.
The government’s projections of growth for 2023 and 2024 reflect confidence in these economic reforms.
They also underscore the resilience of Uruguay’s economy in the face of global challenges.
Despite external pressures, the country continues to maintain a positive economic trajectory.
Uruguay’s proactive approach to inflation control is particularly notable. It has been effective in managing inflation rates, a common challenge in the region.
This success has further bolstered the confidence of the business community.
Lastly, the country’s economic stability has been critical during times of regional uncertainty.
Uruguay has managed to navigate such periods with less turmoil compared to its neighbors.
This stability has been a cornerstone of its economic strategy and a key factor in its positive business climate.