MercoPress. South Atlantic News Agency

Uruguay's blooming economy shows covid-induced setback

Reduced mobility of people to curb covid-19 infections took a toll on the economy, BCU said. Photo: EFE

Uruguay's Gross Domestic Product (GDP) fell 2.8% in the first quarter of 2021 compared to the same period of 2020, according to a Central Bank (BCU) report released Wednesday.

The new data would show a decrease in national economic activity of 0.5%, compared to the last quarter of last year.

This interruption in recovery “was influenced by the health emergency associated with covid-19, which continued to influence the mobility of people and the normal operation of production establishments.”

The Central Bank document also points out that “this decrease was not generalized in all industries, highlighting the better performance of the agricultural, fishing and mining sectors, manufacturing industries and public administration activities, offset by less activity in health, education, real estate activities and other services, in transport and storage, information and communications and in professional activities and leasing.”

Uruguay's economy had grown seasonally in the third and fourth quarters of 2020, after the largest quarterly collapse that occurred in the second quarter of 2020 (-10.5%) due to the measures applied to contain the covid-19.