Uruguay’s Economic Growth Projections Hold Steady at 3.3% for 2024

In August 2024, the Central Bank of Uruguay (BCU) released findings from its Economic Expectations Survey.

Analysts maintain the projected economic growth rate at 3.30% for 2024. This forecast mirrors previous estimates from July, showcasing a consistent economic outlook among local experts.

The survey gathers insights from economists and financial institutions, revealing diverse projections.

On the conservative end, some predict a GDP increase of 2.50%. The most optimistic analysts foresee a rise of up to 4.50%.

In the first quarter of 2024, Uruguay’s economic growth reached 0.6%, following a modest 0.4% increase in 2023.

Factors such as a drought and the completion of major infrastructure projects had impacted the previous year’s growth.

Despite these challenges, President Luis Lacalle Pou’s administration is optimistic, projecting a recovery with a growth rate of 3.0% for the year.

For 2025, analysts have adjusted their expectations, now predicting a growth rate of 2.50%.

Regarding inflation, experts predict a rate of 5.30% for 2024. They also expect an increase of 0.40% in August, according to the survey’s median.

Inflation has begun to slow down, with a recorded increase of 5.45% in the year ending in July 2024. This marks the lowest inflation levels since 2005.

These stable growth projections for Uruguay reflect the nation’s resilience and adaptability amid economic challenges.

They not only highlight expectations within Uruguay’s financial sector but also underscore the importance of economic stability for long-term development.

This survey provides essential indicators for domestic and international stakeholders, shaping economic strategies and investment decisions.