Uruguay economy expands 1.9% in the first quarter but uncertainties persist

Tuesday, June 19th 2012 - 06:23 UTC

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Uruguay’s economic growth quickened in the first quarter, spurred by increased transport and communications. GDP expanded 4.2% from a year earlier and grew 1.9% from the fourth quarter of 2011, the central bank said on its website. Read full article

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v for victory
Go Uruguay!
Jun 19th, 2012 - 03:50 pm - Link - Report abuse 0
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ChrisR
Yes, and Brasil are about to find out what will happen when they cannot support all their exporters in this manner: they STILL have to import many items to incorporate them into their exports thus driving prices up anyway or putting manufacturers margins under pressure, again.

Uruguay are making the correct decisions in keeping the pesos stable without caving in to panic merchants who cannot see further than the end of their noses.

One thing that is of concern is the poorly performing publicly owned companies such as UTE, ANCAP and OSE. Quite why the Government tolerate the senior management of these businesses is beyond me, unless they were the ones who appointed them and do not wish to 'rock the boat'.

Finally, why is there a Uruguayan National Flag Carrier (Pluna). There are only 4.5 million of us in the country, many of who will never fly in airplanes. It 'surprised' the minister that two of the private stockholders 'pulled out'. WHY? Does he think privately owned companies can continue to lose money while the Government get an extra 10% of the fuel price above the regional mean?

Either the Government want a Flag Carrier or not. If not let the New Director sell the assets (presently valued at US$ 290 million) against the debts of US$ 301 million (approximately US$ 11 million loss) and call it a day. No more losses that the Goverment will have to underwrite.

Even CLEVER people in the airline business with much bigger markets / alliances and cheaper fuel are making losses.
Jun 19th, 2012 - 08:13 pm - Link - Report abuse 0
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