Uruguayan government estimates economy grew by around 5% in 2022

Uruguay’s gross domestic product (GDP) grew by about 5 percent in 2022, Economy and Finance Minister Azucena Arbeleche estimated yesterday (Wednesday).

Presenting a report on Uruguay’s fiscal situation and macroeconomic outlook, Arbeleche ratified the 4.8 percent forecast included in the Rendición de Cuentas and added that “perhaps” it will be “a little above 5 percent”.

“The great uncertainty is the impact that the drought will have in the fourth quarter of 2022,” he warned about the activity data to be released by the Central Bank of Uruguay (BCU) in mid-March.

According to the authorities, the drought that has affected the country since the end of last year is the worst in decades and has caused millions of dollars in damages to agriculture.

Arbeleche explained that behind last year’s expansion, “there was very dynamic consumption, exports, and investments in goods and services”.

Exports “reached record levels,” and “household consumption has an important evolution, and we expect it to continue as real wages begin to recover”, according to the explanation of the Minister of Economy and Finance.

The person in charge of the economic policy of the government of President Luis Lacalle Pou emphasized that at the level of investment, “the figure was very positive and continued to be encouraged by the Executive Power” at the same time that the economic growth was translated into a “strong labor market”.