## Uruguay: 2024 Article IV Consultation-Press Release and Staff Report

_IMF Staff Country Reports, July 11, 2024_

## Source details

**Canonical URL:** [Uruguay: 2024 Article IV Consultation-Press Release and Staff Report](https://www.imf.org/en/publications/cr/issues/2024/07/11/uruguay-2024-article-iv-consultation-press-release-and-staff-report-551750)

## Other formats

- [Markdown version](/en/publications/cr/issues/2024/07/11/uruguay-2024-article-iv-consultation-press-release-and-staff-report-551750/index.md)
- [Structured JSON version](/en/publications/cr/issues/2024/07/11/uruguay-2024-article-iv-consultation-press-release-and-staff-report-551750/index.json)
- [Bundle manifest](/en/publications/cr/issues/2024/07/11/uruguay-2024-article-iv-consultation-press-release-and-staff-report-551750/bundle-manifest.json)

## Bibliographic details
- Published: July 11, 2024
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9798400282904.002

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### Macroeconomic performance and 2023 assessment
- In 2023, Uruguay confronted the impact of a once-in-a-century severe drought and external headwinds, but the economy remained resilient owing to the authorities’ sound macroeconomic policies, the country’s political stability, and strong institutions.
- While economic growth decelerated in 2023:
  - Employment rose.
  - Inflation fell within the target range.
- As inflationary pressures cooled off, the Banco Central del Uruguay started lowering its monetary policy rate in April 2023, while maintaining a contractionary stance.

### 2024 outlook and drivers of rebound
- The economy is expected to strongly rebound in 2024, underpinned by:
  - Recovery of agricultural exports.
  - Increased cellulose production.
  - Easing of financial conditions.
  - Robust private consumption.

### Risks and fiscal/external position
- Main risks are broadly balanced.
- Overall fiscal and external risks are low.
- The post-drought growth momentum creates opportunities for reinvigorating fiscal consolidation efforts.

### Fiscal framework and policy recommendations
- The crafting of the next five-year budget law opens an opportunity to recalibrate the fiscal rule targets to place debt on a downward path.
- Refinements to the fiscal rule would help consolidate recent credibility gains.
- Structural reforms are highlighted as key to:
  - Unlock potential growth.
  - Create policy space to preserve the country’s safety net and social cohesion.
  - Support favorable sovereign debt ratings.

### Monetary policy guidance
- Monetary policy should remain contractionary to ensure that inflation and inflation expectations stay within the target range in a sustained manner.

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## Content in this bundle

- **1. Understanding Uruguay’s Exchange Rate Fluctuations**
  - [1. Understanding Uruguay’s Exchange Rate Fluctuations (Markdown version)](/-/media/files/publications/cr/2024/english/1uryea2024001-print-pdf.pdf.md){rel="alternate" type="text/markdown"}
  - [1. Understanding Uruguay’s Exchange Rate Fluctuations (PDF)](/-/media/files/publications/cr/2024/english/1uryea2024001-print-pdf.pdf){rel="external" type="application/pdf"}

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_Source: https://www.imf.org/en/publications/cr/issues/2024/07/11/uruguay-2024-article-iv-consultation-press-release-and-staff-report-551750_