A Uruguay construction worker had to borrow the equivalent of seven US dollars from a neighbour to get to work. It was Thursday morning and several turned up to loan him the requested money.
The Uruguayan economy continues to expand strongly having advanced 2.3% in the second quarter over the first quarter and 10.4% compared to a year ago and 9.8% over the fist half of 2009, according to the latest release from the Central Bank.
Uruguay’s beef exports may rise by 2.6% next year as demand recovers from the global recession, according to a unit of the U.S. Department of Agriculture.
Mercosur is currently a “Foreign Affairs ministries club” which has failed in getting people involved in the integration idea and process, said Uruguayan Foreign Secretary Luis Almagro during a press conference Monday at Government House.
Swiss-based iron ore mining start-up Zamin Ferrous through its Brazilian affiliate is finishing the drilling stage of an iron-ore project in Valentines, Uruguay, and expects to complete its “definitive” feasibility study by mid-2011.
Under the heading of “Latin America’s impressive little guys, Uruguay and Paraguay”, the Financial Times praises the two countries for “punching above their weight” and catching the attention of foreign corporate investors.
In spite of the good relations between the governments of Uruguay and Argentina following the agreement reached on pulp mills, pending and new issues are creeping into the bilateral agenda that could threaten the good chemistry between presidents Jose Mujica and Cristina Kirchner.
Uruguay is resolutely on its way to reclaim the investment grade status it lost in 2002 according to Franco Uccelli an analyst with JP Morgan Chase. Uccelli says that growth continues to outperform expectations; infrastructure projects are set to take centre stage; fiscal consolidation is firmly underway; the public debt burden is poised to decline and no international bond issuance is planned for 2010. Fundamental support for the currency remains intact and a return to Investment Grade has become a key priority for the government.
The Uruguayan government announced that it authorized the repurchase of 500 million US dollars of sovereign debt with the purpose of optimizing its composition and the maturing timetable.
Standard & Poor's Ratings Services raised its long-term foreign and local currency sovereign credit ratings on Uruguay to BB from BB- with a stable outlook thanks to the country's track record of sustained economic growth.