MercoPress. South Atlantic News Agency

Uruguay's economy grows 7.7% in second quarter of 2022

An increase in activity in agriculture, fishing, and mining were key factors, the BCU stated

In its National Accounts report published Friday, the Central Bank of Uruguay (BCU) announced that the country's economy had grown 7.7% in the second quarter of 2022 “mainly due to the high yields achieved in the soybean harvest.”

The measurement was made against the second quarter of 2021, and the outcome is “mainly to the high yields achieved in the soybean harvest that began to be exported during the quarter and to the normalization of sanitary conditions in the country, with an important incidence of education services,” according to the BCU.

“In seasonally adjusted terms, economic activity increased 1.1% with respect to the immediately preceding quarter,” the BCU added.

The document also showed growing figures in most sectors, “activities of Health, Education, Real Estate and other services and Agriculture, Fishing and Mining standing out,” as per the BCU review.

“For its part, external demand presented a growth in the physical volume of Exports of 16.3% while imports increased 9.7% resulting in an increase in net external demand in terms of physical volume with respect to the previous year”, the document added.

Also key was the increase in activity in the agriculture, fishing, and mining sectors (17.2%), which was influenced by higher soybean production, which began to be exported in the second quarter of 2022, while there were advances in transportation, storage, and communications (9.5%), construction (4.9%), professional activities and leasing (8.2%), manufacturing (2.1%) and financial services (5.4%).

The document also showed a 2% decline in public administration activities.

Consumption showed an increase of 6.1%, while investments went up 3.9%. In terms of volume, exports rose 16.3%, while imports increased 9.7%.

The government of President Luis Lacalle Pou raised its GDP growth forecast to 4.8% in June from 3.8% in February. Uruguay's economy expanded 4.4% in 2021, leaving behind the 6% drop reported in 2020 as a result of the Covid pandemic when a historic cycle of 17 years of consecutive growth came to an end.