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Montevideo, July 13th 2024 - 22:39 UTC



Lacalle highlights role of SMEs in Uruguay's economy

Saturday, June 22nd 2024 - 10:00 UTC
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Lacalle also recalled the State's role in supporting SMEs through the Covid-19 pandemic Lacalle also recalled the State's role in supporting SMEs through the Covid-19 pandemic

Uruguayan President Luis Lacalle Pou insisted Friday on the importance of SMEs for his country's economy. During a speech at the Midland Hotel & Resort in Paso de los Toros, in the department (province) of Tacuarembo, the head of state argued that his government lowered taxes on small businesses because they drove local activity, and to govern a country you have to know its human geography.

Under the Multicolor administration, “taxes were lowered for SMEs,” Lacalle explained. Not only did the measure reach “individuals and some retirees, but also companies,” he added while pointing out that the money they saved did “not go to foreign investments, but to the neighborhood: One more job, one more investment, changing the truck, advertising...”

Lacalle then elaborated on his “human geography” theory saying that “it is impossible to govern the country well if you do not know it.”

At the Conference of Associations and Commercial Centers of the Interior organized by the Business Confederation of Uruguay (CEDU), Lacalle also pointed out that “not understanding the economic heart of a locality is to amputate 50% or 60% of the life of that place” while recalling that during his government and particularly during the Covid-19 pandemic, the State supported and assisted SMEs.

“Something happened that a priori one would not have evaluated: formalism grew during the pandemic. What happened there? It is public-private cooperation” whereby “micro and SMEs leaned on the State” to overcome that plight.

Lacalle then highlighted the role played by the National Development Agency (ANDE) during the sanitary crisis. He made those remarks in the presence of ANDE Head Carmen Sánchez and other local and national authorities.

He also recalled the dialogue between the Government and local businesspeople to mitigate the consequences of the currency exchange unbalance in Argentina which had Uruguayans doing their shopping across the border. The trend has reversed since the Libertarian Javier Milei took office on Dec. 10, 2023.

ANDE is present in 365 localities and has assisted more than 23,000 entrepreneurs and small companies, particularly regarding optimizing competitiveness and productivity. “The numbers indicate that we are on the right track,” said Sanchez.

Categories: Economy, Politics, Uruguay.

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