MONTEVIDEO – Uruguay’s economy will continue growing faster than the region’s, but at a more moderate pace, the Uruguayan Central Bank said in its third-quarter Monetary Policy Report.
This performance will come about “as some of the investments made in the country in recent years come into production,” the central bank said without providing figures on economic growth.
The report describes an economic situation in the region marked by “continued deterioration,” with Brazil, according to analysts, contracting by 2.8 percent in 2015 and 1 percent in 2016.
Argentina’s “economic activity again showed signs of weakness after a recovery during the first half of the year,” the Uruguayan Central Bank said, adding that “the international outlook has become particularly unfavorable” for that country’s economy.
The bank noted the latest projections from the International Monetary Fund, which expects the global economy to grow 3.1 percent in 2015, “a rate slightly lower” than last year.
An IMF report released in early October forecast that Latin America would enter into a recession this year, with the gross domestic product (GDP) falling 0.30 percent due to a drop in commodity prices and poor performances from Brazil and Venezuela.
The central bank said it expected Uruguay’s economy to grow 2.5 percent this year, one percentage point less than in 2014.