The entity published its new world economic perspectives where Uruguay is still affected by the drought.
He world Bank republished its world economic outlook where Uruguay continues to maintain the same growth projections for the 1.8% in Gross Domestic Product (GDP) for the remainder of the year, despite the fact that the drought continues to create difficulties for the economy.
In the June report on “World Economic Outlook” for the Latin American and Caribbean region, accessed by Ámbito.com, the growth projections of the economies that make up the territory were reviewed once again, where some economies – such as Argentina – had bad news marked by a recession.
However, Uruguay obtained the same percentage of 1.8% of GDP that it had published at the beginning of April in the report “The potential of integration – opportunities in a changing global economy”. At that time, the estimates were lower than what was expected months ago, but it was affected by the economic impact of the water deficit, especially in agricultural export production, which continues to plague the country to date.
According to the World Bank, “global growth has slowed markedly and the risk of financial stress emerging in the emerging markets and developing economies (MEED) intensifying, in a context of high world interest rates”.
Although the picture is similar in almost the entire region, in Uruguay —as well as in Argentina which, in turn, has other particularities— there is an element that has had a strong impact in recent months when making forecasts: drought. In the case of Argentina, for example, the results of the first report in April changed considerably since, at first, forecasts estimated 0% growth, while the latest report foresees a 2% recession.
According to the report presented at the beginning of April, Latin America and the Caribbean performed poorly compared to the world and is the region that has grown the least since 2019, with a slow post-pandemic recovery. In this context, and despite it, South America is the subregion that has most recovered “normality”; and Uruguay is one of the countries with the best performance, with inflation, employment and poverty figures improving after a year of record exports.
Source: Ambito
