Author/Editor:

International Monetary Fund. Western Hemisphere Dept.

Publication Date:

February 21, 2020

Electronic Access:

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Summary:

Uruguay is in an enviable position in many respects. The country enjoys political stability, strong governance and institutions, and a high degree of social cohesion. Following a decade and a half of robust growth, the country boasts high per capita income, low levels of poverty and inequality, and a resilient financial sector. More recently, in a context of a volatile region and global uncertainties, challenges have emerged. Growth, investment, and employment have slowed; inflation and inflation expectations have remained persistently above target; fiscal accounts have deteriorated, and debt has increased. The political and economic landscapes—with the post-election mandate and a growth boost due to large private and infrastructure investments—present an opportunity to address these challenges and preserve the social compact for future generations.