MercoPress. South Atlantic News Agency

IMF mission praises Uruguay's economy

The IMF also suggested making “further efforts to put the debt-to-GDP ratio on a downward path”

The International Monetary Fund (IMF) has completed its annual review of the Uruguayan economy, praising its resilience and stability.

The mission, led by Raphael Espinoza, visited Montevideo from September 8 to 19 to conduct the 2025 Article IV consultation. At the end of the visit, it issued a statement highlighting the growth in agricultural production in 2024, following the severe drought of 2023, which contributed to a 1% GDP deficit.

The IMF report also highlighted the controlled inflation and ample international reserves. In addition, it noted that the country's credit ratings remain strong, giving it favorable access to global financial markets.

However, the IMF also issued a warning, recommending that Uruguay make “further efforts to put the debt-to-GDP ratio on a downward path.” To achieve this, the organization suggested measures such as moderating wage spending, reducing tax incentives, and improving the efficiency of government spending.

Despite uncertainty surrounding global trade policy, Uruguay maintains favorable access to financial markets, backed by investment-grade credit ratings and sovereign spreads at historic lows, currently the lowest in the region, the IMF team also pointed out, while forecasting economic growth of 2.5% this year and 2.4% in 2026, driven by the recovery of real wages after the pandemic and less domestic volatility.

The IMF's recommendations are aimed at increasing the primary fiscal surplus to 0.5% of GDP by 2029, a goal that would help ensure long-term fiscal sustainability.

The document also praised Uruguay's proposed fiscal reforms, which include a binding fiscal rule and an expanded mandate for the Fiscal Council, noting that their proper implementation will be key to obtaining expected reputational benefits.