Uruguay sees early-than-expected economic recovery in November 2023

The Uruguayan economy grew by 5% in November, signaling a turnaround, according to specialists at the country’s Central Bank (BCU).

The Monthly Economic Activity Indicator (IMAE) – a leading variable for Gross Domestic Product (GDP) – increased by 2% in November compared to October in seasonally adjusted terms.

In comparison to the same month last year, the IMAE showed a growth of 5.1%, indicating a robust recovery.

Uruguay’s economy experienced a period of relative stagnation from 2015 to 2019, despite some positive rates. It entered a recession at the end of 2019, which deepened in 2020 due to the pandemic.

Subsequently, it grew by 5.3% in 2021 and 4.9% in 2022. However, in 2023, Uruguay’s economy faced the impact of severe drought and the exchange rate gap with Argentina, diverting consumption by hundreds of millions of dollars. While 2023 tends to register stagnation, the latest IMAE data show that the recovery occurred in the last quarter of last year.

For 2024, the Central Bank’s monthly survey predicts a growth rate exceeding 3%.

The Monthly Economic Activity Indicator (IMAE) is a synthetic indicator that summarizes the activity of different sectors of the economy in a given month, measured at constant prices from the year 2016. Its year-on-year variation provides a measure of the country’s short-term economic activity evolution.

The calculation of the IMAE is based on multiple supply indicators weighted by the participation of economic activities within the GDP.

Source: Subrayado 

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