Uruguay: 2019 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Uruguay
IMF Staff Country Reports, February 21, 2020
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- Uruguay: 2019 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Uruguay
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Bibliographic details
- Published: February 21, 2020
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781513530833.002
Key findings and country assessment
- Political stability, strong governance and institutions, and a high degree of social cohesion.
- After "a decade and a half of robust growth", the country reports:
- High per capita income.
- Low levels of poverty and inequality.
- A resilient financial sector.
- Recent environment: volatile region and global uncertainties have generated emerging challenges.
- The post-election mandate combined with a growth boost from large private and infrastructure investments presents an opportunity to address those challenges and preserve the social compact for future generations.
Risks and macroeconomic challenges
- Need to reduce public debt and rebuild fiscal buffers to manage sizable risks arising from domestic and external volatility.
- Inflation management: authorities are expected to bring inflation toward the mid-point of the target range.
- External and regional volatility may undermine growth and fiscal outcomes if buffers are not strengthened.
Policy recommendations and priorities
- Fiscal policy:
- Use the favorable policy window created by higher investment to reduce debt and rebuild buffers.
- Improve the fiscal framework to enhance debt sustainability over the medium term.
- Monetary policy and inflation targeting:
- Bring inflation toward the mid-point of the target range.
- Leverage institutional advantages to further improve the inflation targeting framework.
- Structural reforms:
- Implement structural reforms to raise potential growth and safeguard achievements of the past decade.
- Use Uruguay’s institutional strengths to advance reforms that bolster long-term growth prospects and social cohesion.
- Financial sector:
- Maintain resilience of the financial sector and monitor downside risks from regional and global shocks.
Thematic focus areas (as categorized)
- Economic sectors
- External debt
- Fiscal policy and Fiscal stance
- Inflation and Prices
- Public debt and Public sector
Uruguay: 2019 Article IV Consultation—Press Release; Staff Report; and Statement by the Executive Director for Uruguay (IMF Staff Country Reports, February 21, 2020).
Content in this bundle
- 1uryea2020001