Long lines of vehicles were recorded this Saturday at the border crossings with Argentina, which suggests a return of the Uruguayans to the shopping tourism, a phenomenon that exploded last year and is beginning to be seen as the economy grows again exchange rate difference with the neighboring country.
This price gap, added to what may be an early start of the September holidays, which officially begin on Wednesday but are brought forward to Monday in many private schools, resulted in a congestion of cars on the border with the neighboring country.
According to data from the National Directorate of Highway Police, At least a kilometer of line of vehicles was seen leaving the country through the General San Martin International Bridge, that connects Brother Bentos with Gualeguaychu.
Although travel agencies reported an increase in tickets to Brazil, Land crossings to Argentina are already traditional for the country’s families, who in this case could take advantage of the opportunity to make purchases, although less cheaply than in 2023.
The exchange rate gap is growing, but it is far from 2023
Specifically, the price gap between both countries reached 80% in July according to the Border Price Indicator (IPF) prepared by the Catholic University of Uruguay (UCU), which represented an increase from the previous 59.2%.
The largest difference in value was recorded in Alcoholic Beverages and Cigarettes, reaching 108%, only surpassed by Meals Outside the Home, which reached 156%, with increases of 18 and 21% respectively in recent months. In turn, Household Products reached 97%, with a strong increase of 32% in just two months.
Thus, although the neighboring country is more expensive than 2023 and the situation is far from the shopping boom of last year, the number of Uruguayans crossing the border at the beginning of the spring break raises alarm signals about the consumption, which is recovering in the domestic market and could suffer an impact if there is another shift towards the neighbouring country.
Specifically, during 2023, trips to the neighboring country doubled over the previous year and spending grew by 89%. In 2024, crossings decreased after the devaluation of Javier Milei in Argentina and the reduction of the price gap, although this exchange rate difference has increased in recent weeks and the crosses turn on a warning light on the VAT collection.
Source: Ambito
I am an author and journalist who has worked in the entertainment industry for over a decade. I currently work as a news editor at a major news website, and my focus is on covering the latest trends in entertainment. I also write occasional pieces for other outlets, and have authored two books about the entertainment industry.
