Economic growth expectations in Uruguay fall

Analysts, public and private institutions are readjusting accounts and reducing expectations for economic growth, according to the results of a survey by the Central Bank of Uruguay (BCU).

The survey showed that the participants adjusted their forecasts for economic performance during 2023, lowering their expectations. The average response indicated that the economy would grow 1.45 percent, in what is the sixth consecutive negative adjustment since last November.

It was expected that by that date the economy would have grown by 3 percent, although the outlook was around 1.5 percent by April.

The persistent drought that affects agriculture activities, particularly exports, is impacting the results of the economy.

The water crisis has already caused losses due to low yield and quality in the soybean harvest, while livestock reports a 20 percent decrease.

Also, exports in various items decreased so far in 2023, particularly meat sales to China, due to the reduction in purchases from Uruguay.

See below Uruguay’s beef exports from maritime ports, in TEUs, between Jan 2020 and Mar 2023. The data is from DataLiner.

Uruguay beef exports | Jan 2020 – Mar 2023 | TEU

Source: DataLiner (click here to request a demo)

Fuel costs are believed to increase, since the only refinery, La Teja, belonging to the state-owned company Ancap, has a four-month technical shutdown, scheduled due to extensive maintenance.

Source: Prensa Latina

To read the original report, see: https://www.plenglish.com/news/2023/05/18/economic-growth-expectations-in-uruguay-fall/

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