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Montevideo, November 21st 2018 - 10:27 UTC

Business climate in Latam receives 'unfavorable' assessment from Brazil's leading foundation

Thursday, November 14th 2013 - 18:30 UTC
Full article 10 comments
Getulio Vargas Foundation elaborates the index surveying 137 experts Getulio Vargas Foundation elaborates the index surveying 137 experts

The business climate (ICE) in Uruguay was down in the third quarter of the year, which means the country dropped from position 5 to 7 in the ranking of the eleven economies contemplated in the index elaborated by the Brazilian Getulio Vargas Foundation and Germany's respected IFO.

 Uruguay's ICE went down from 5.3 points to 4.8 in the previous quarter. At the same time Ecuador ICE remained at 5 points and Chile improved from 4.4 to 5.2. This meant Uruguay's ranking dropped from position 7 top 5 out of eleven.

The drop in Uruguay is attributed to a significant fall in the current situation index ISA, from 6.5 to 5.6 points and a slight slide in expectations for the next six months, from 4 to 3.9 points.

With this score Uruguay is in the 'depression' category since the expectations index is less than 5 points and the current situation is above that threshold. Chile and Ecuador share that condition while Argentina is in 'recession' and Brazil in 'recovery'.

Nevertheless Uruguay ICE remains above the regional average. Latin America's index remained at 4.4 as in the previous quarter because of a drop in ISA from 4.5 to 4 and an improvement of the IE from 4.3 to 4.8.

“Despite the improvement in expectations, both indexes remained below the historic average of the last ten years, at the 'unfavorable' assessment zone”.

The ICE index is done on the basis of a survey of 137 experts from the region.

The survey also included questions on what are considered the main problems inhibiting current economic growth in the region. Replies: lack of international competitiveness; lack of confidence in government policies and the shortage of qualified labor.

“This is not a good signal since investments depend on confidence in government policies”, concludes the report.

Top Comments

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  • Condorito

    Chile, the ICE-ing on the cake.

    Nov 14th, 2013 - 06:40 pm 0
  • Brasileiro

    Comment removed by the editor.

    Nov 14th, 2013 - 10:24 pm 0
  • ChrisR

    Uruguay is undoubtedly in a far worse situation economically than when Vasquez was the President.

    The old commie terrorist Pepe with his deluded inarticulate homilies that nobody seems to understand has made a stupendous failure of his presidency. In less than four years he has bloated the government “workers” (if only that were true, the majority are lazy sods) and wasted serious money on his misplaced Social Inclusion Programme, which is neither social or includes the participants in the mainstream activity of working for a living.

    However, his crowning “glory” must be the fact that he has brought forward sovereign debt that will take TWO generations to pay back.

    Only the dummies of the old Tupas could think that an achievement.

    Now whether that puts Uruguay into a depression is a moot point.

    Nov 15th, 2013 - 06:52 pm 0
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