off-the-wire

UPDATE 1-IMF forecasts Uruguay's economy will expand by 2% in 2023

Kitco Media
By Reuters
Published:
Updated:
Reuters
(Adds details on factors for growth, quote from IMF report) March 20 (Reuters) - Uruguay's economy is seen growing by 2.0% this year, according to an International Monetary Fund (IMF) forecast released on Monday, with the lender adding that the South American country's inflation rate will slow to 7% in 2023. The growth estimate comes as historic drought strikes Uruguayan farmland as well as in neighboring Argentina.


The IMF pointed to uncertainty over the economy's prospects due in part to the current drought conditions, according to the statement following a mission to the country, though it also cited several other risk factors. "Main macroeconomic risks are derived from a worsening of external conditions, deterioration of international geopolitical tensions, and the severity and duration of the current drought," the IMF said.


Factors contributing to economic growth this year include the expectation of a strong tourism season, increased cellulose production and exports, as well as robust consumer consumption as wages recover.


Meanwhile, the IMF sees the rise in consumer prices cooling to 7% this year.
(Reporting by Carolina Pulice; Editing by David Alire Garcia)

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