Uruguay’s economy is expected to grow 1.3% in 2023

Uruguay’s economy is expected to grow 1.3% in 2023, affected by a major drought, said Minister of Economy and Finance Azucena Arbeleche.

She presented this year’s economic growth estimate to the Senate Finance Committee.

The estimate is made amidst a historical drought, a significant concern.

She held a press conference with the Central Bank of Uruguay (BCU) and Office of Planning and Budget (OPP) heads.

Arbeleche noted that additional funds for education, health, security, and infrastructure are included in the current Accountability.

“We are increasing spending within the fiscal rule, ensuring that the debt does not increase and remains stable over time,” she added.

BCU President, Diego Labat, stated the annualized inflation of 4.79% is as expected and projected in 2020.

He estimated that in 2023 and 2024, it would remain in the 4-6% target range.

The BCU’s latest National Accounts report showed a 1.2% year-on-year GDP expansion in 2023’s first quarter, following a 4.9% activity increase in 2022.

Like many other countries, Uruguay is facing economic challenges due to the global pandemic.

The government ensures economic stability while addressing essential areas like education, health, and security.

The drought has added an extra layer of complexity to the economic scenario, affecting agriculture, a vital sector of the economy.

Despite these challenges, the government and the central bank work together to maintain economic stability and growth.