Uruguay's economic future, according to the IMF

By Pittaluga Abogados

The latest World Economic Outlook report of the International Monetary Fund (IMF), reveals that global growth decreased during the first half of 2015. The reasons? Weakening of growth in oil-exporting countries, China slowdown, falling commodity prices, geopolitical tensions and internal conflicts.

Latin America is no exception. According to the report in 2015 the gross domestic product (GDP) of the region will shrink 0.3%, while for 2016 a 0,8% growth is expected. At the end of the year the most affected countries will be Brazil and Venezuela, both of whom will suffer a GPD contraction of 3% and 10% respectively.

But not everyone will be in the dark threshold. The IMF expects a GPD increase in Bolivia (4.1%), Paraguay (3%), Colombia and Uruguay (2.5%), Peru (2.4%), and Mexico and Chile (2.3%).

In the case of Uruguay, Christine Lagarde, the IMF managing director, said that the country will not be affected by a "lengthy slowdown" in its economy. "We don´t foresee a recession in Uruguay. We trust in the ability of the Uruguayan authorities to take appropriate measures to make growth sustainable. It is essential for them to improve services in education, health and transport".