Analysts have revised Uruguay’s economic growth forecast for 2023 to a modest 0.35 percent.
This is a decrease from the earlier 0.70 percent prediction. The Central Bank of Uruguay (BCU) reported these figures.
Their Expectations Survey showed this revised outlook.
Opinions on the country’s Gross Domestic Product (GDP) vary. Some experts foresee a slight decline of 0.30 percent.
Others are more optimistic, expecting a rise of up to 0.93 percent. These differing views reflect the uncertainty in economic predictions.
Despite the cautious forecast, certain factors could boost Uruguay’s economy. The El Niño phenomenon might play a key role.
Its associated rainfall could aid agricultural recovery. This would add value to the electrical sector. Experts believe this could lead to an additional 2 percent growth in 2023.
Other institutions like the Center for Economic Research (Cinve) offer a slightly different perspective.
They predict GDP growth around 0.6 percent for 2023. For 2024, they expect a 3 percent expansion. These projections show a slightly more optimistic view.
BBVA Research predicts a 2 percent growth. They attribute this to increased private consumption and better real wages.
For 2024, a slight increase to 2.3 percent is expected. This forecast anticipates overcoming the negative impacts of drought.
The Government’s estimates align with this positive outlook. They predict a 2 percent growth in 2023.
The expected growth is likely to create about 12,000 jobs, and inflation is projected to reach 6.7 percent.
In conclusion, Uruguay’s economic growth in 2023 seems modest but hopeful.
Various factors, from global weather patterns to local economic policies, influence these predictions.
The range of forecasts underscores the complexity of economic forecasting. New data may prompt revisions to these predictions, reflecting the economy’s dynamic nature.