Uruguay concerned with Argentine economy growing misbalances
Uruguay’s Economy minister Fernando Lorenzo expressed concern about the deteriorating indicators from the Argentine economy which could have a negative impact on the country’s activity.
“Argentina is showing preoccupying misbalances” in its economy said Lorenzo who supported his statement with such indicators as consumers’ confidence, the monthly economic activity estimate, the evolution of the exchange rate, budget deficit and the current account situation.
Lorenzo said that Argentina presented the most complex scenario for Uruguay given that considerable slower economic activity index can be expected.
“Argentina has high inflation, policies growingly protectionist and a burgeoning budget fiscal deficit and for the first time in many years a current account deficit”, underlined Lorenzo, who recalled the close links with the Uruguayan economy both in goods, services and finance.
A “clearly deteriorating” scenario in neighbouring Argentina is a relevant piece of information for Uruguay which needs to be addressed with the most caution, underlined Lorenzo.