Amidst political turmoil and leadership succession, Uruguay’s economy is predicted to see a strong rebound this year, with a 3.7% growth driven by a surge in agricultural exports and balanced macroeconomic risks. The International Monetary Fund (IMF) also anticipates an increase in cellulose production by UPM and the recovery of real wages, with a projected 2.9% improvement for 2025.

Despite facing a historic drought in 2022 and 2023, Uruguay has seen an economic recovery, with easing financial conditions and robust private consumption attributed to salary updates and a reduction in the price gap of products from neighboring Argentina. Despite the challenges faced during the drought, the country is expected to see positive growth in the coming years.

Inflation in Uruguay is expected to increase in the second half of 2024, but the Central Bank (BCU) is gradually easing rates to support economic growth. The IMF emphasizes the importance of continued vigilance of monetary policy to build credibility and support efforts to de-dollarize the economy.

As President Luis Lacalle Pou nears the end of his term in office, Uruguay is navigating through economic challenges with hopes for a strong recovery. Amidst political scandals and competition for leadership succession, the country is focused on building a better future for its citizens.