## Uruguay: 2019 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Uruguay

_IMF Staff Country Reports, February 21, 2020_

## Source details

**Canonical URL:** [Uruguay: 2019 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Uruguay](https://www.imf.org/en/publications/cr/issues/2020/02/20/uruguay-2019-article-iv-consultation-press-release-staff-report-and-statement-by-the-49065)

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## Bibliographic details
- Published: February 21, 2020
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781513530833.002

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### 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).*

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_Source: https://www.imf.org/en/publications/cr/issues/2020/02/20/uruguay-2019-article-iv-consultation-press-release-staff-report-and-statement-by-the-49065_