It is not clear where the government commanded by Argentine president Cristina Fernández is heading to, Economy Minister of neighboring Uruguay Mario Bergara affirmed saying the economic ups and downs in Argentina have deeply impacted on Uruguayan exports, tourism and real estate activities.
Uruguayan economic officials have warned the ruling coalition Broad Front about the regional risk-situation in complex Argentina and stalled Brazil, and its influence on Uruguay which needs to lower its budget deficit and improve labour productivity and competitiveness.
The head of an economics think-tank said that the Uruguayan government reactions to his criticisms of the management of the country’s economy are a kind of “authoritarian tick” which pretends to censor all those who do not share the “official truths”.
Uruguay’s economic growth slowed more than economists forecast in the fourth quarter as a refinery closure and the start of a drought trimmed a nine-year expansion; nevertheless the Central Bank said overall expansion in the twelve months of 2011 was “very good” in the current global context and just short of government’s target.
The Uruguayan economy expanded 2.3% in January-March over the previous quarter, which has elevated forecasts for the twelve months of 2011 to a floor of 6.5%. However the Uruguayan government is concerned that consumption again expanded at a higher rate than GDP.