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Montevideo, May 27th 2019 - 09:23 UTC

Uruguay economy growing at a slower pace: imports up; exports stagnant

Wednesday, June 18th 2014 - 08:31 UTC
Full article 3 comments
Manufacturing and construction activity strongly influenced by the pulp industry   Manufacturing and construction activity strongly influenced by the pulp industry

Uruguay's economy expanded 2.4% in the first quarter compared with the same 2013 period, but contracted 0.4% compared with the fourth quarter of last year, the central bank said this week. However deceleration is a fact since growth of the first quarter in 2013 has gone up 4.6% over 2012.

 The government expects the economy to expand in the range of 3% this year, which is below previous estimates at the beginning of the year, but still growing. Uruguay's GDP at the end of March was estimated in 55,6 billion dollars with a per capita income of 16.331 dollars.

Compared to the previous quarter, in the first quarter of this year, agriculture and livestock was down 2.2%; and manufacturing lost 7.6% because the UPM pulp mill was shut down for maintenance and Pepsi Cola concentrates also reported a lesser activity.

Construction also contracted, 2,4% closely influenced by the end of work at the second pulp mill, Montes del Plata, expected to be inaugurated next month. Transport, communications, storage was unchanged, while power and other activities grew by 0.5%.

Likewise compared a the first quarter of last year, there was an overall modest growth but several sectors fell back sharply. Agriculture was down 5.4% mainly because of disputes between abattoirs and farmers over livestock prices, while in agriculture only wheat expanded modestly. Manufacturing dropped 2.3%; construction 2.1% and power, 0.7%.

However there was strong performance from transport, storage and communications with an annual expansion of 7.7%. This can be explained by a greater level of imported goods and demand for complementary services, such as cargo transport.

The report also indicates that domestic demand with a 2.2% expansion helped overcome the strong contractions of foreign tourism and construction.

Regarding foreign trade, imports kept climbing having increased 10.8% in the quarter while exports again contracted, minus 2%.

Based on this latest data, all economic analysts coincide that Uruguay is moving at a much slower growth pace, but nevertheless will end 2014 with an expansion in the range of 2.5% to 2.8% and 3%, mainly based on a strong domestic demand, which coincides with a presidential election period next October.

Nevertheless the economy is forecasted to expand anywhere between 2.5% and 3%.

Top Comments

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  • Briton

    Uruguay
    Good on you, but ?
    sshhhh walls have ears, you know what we mean..lol

    Jun 18th, 2014 - 12:59 pm 0
  • ChrisR

    These figures must have come from the fantasy that resides in “No Money Pepe's” head because I can see no objective evidence at all that things are growing, just the opposite.

    As for domestic demand overcoming the lack of argie tourists and the collapse of construction all I can say to that is whoever stated that doesn't know Punta or Piriapolis or any of the private holiday renters in between the two places: it's DIRE!

    The sooner this bunch of shitheads called our government go the better it will be.

    Jun 18th, 2014 - 03:40 pm 0
  • Anglotino

    Colombia just released its growth and it came in at 6.4%. Even with Venezuela next door (actually this probably helped).

    Jun 19th, 2014 - 09:27 pm 0
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