Private consultants forecast the Uruguayan economy will expand 2.5% in 2015, compared to 3.5% the previous year, but recommend a strong moderation in government spending to retake the path of sustained growth and contain the consequences of an adverse international scenario mostly recessive.
The Uruguayan economy contracted 0.7% in the third quarter compared to the previous quarter, although it jumped 3.3% over the same period a year ago, according to the latest release from the Central bank in Montevideo. During the second quarter, the expansion had reached 2.4%, and 1.5% previous to that.
Uruguay’s inflation in November was over 9% in the last twelve months despite government efforts to contain it by agreeing a price freeze with leading supermarkets and having public utilities’ rates unchanged.