Uruguay: 2021 Article IV Consultation—Press Release; Staff Report; and Statement by the Executive Director for Uruguay

IMF Staff Country Reports, January 25, 2022

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Canonical URL: Uruguay: 2021 Article IV Consultation—Press Release; Staff Report; and Statement by the Executive Director for Uruguay

Uruguay entered the pandemic with solid institutions and social cohesion but growing macroeconomic imbalances—especially slow economic growth and weak public finances—as the end of the last commodity price boom in 2014 uncovered structural weaknesses.
A new government came to power in March 2020 with a mandate to boost growth and restore fiscal sustainability.
Legislation setting the foundations for many of the reforms has been passed and implementation is advancing––including on a new fiscal rule, and state-owned enterprise (SOE) and pension reforms.
Publication date: January 25, 2022.

Pre-pandemic structural weaknesses included slow economic growth and weak public finances, uncovered after the end of the last commodity price boom in 2014.
The COVID-19 shock occurred against this backdrop, with policy responses and reform momentum under a new government since March 2020.
Implementation progress highlights:
- A new fiscal rule.
- SOE reforms.
- Pension reforms.

Restore fiscal sustainability through implementation of the new fiscal rule.
Advance SOE and pension reforms to address structural fiscal weaknesses and support medium-term growth.