Uruguay: Tepid regional recovery is a positive

​Domestic growth is back on track

In 2016 real GDP growth came in at +1.5%. Growth was weighed down by deep recessions in Brazil and Argentina. Low wheat and beef prices, which together represent one third of Uruguay’s exports, combined with lagging regional demand saw exports contract in 2016.
We expect growth to benefit from a regional recovery in the near term together with a strengthening of domestic private consumption. Real GDP is set to grow by +3.0% in 2017, given the high Q1 performance of +4.4% y/y. The 2018 estimate stands at +2.5%.