Uruguay managed to “decouple” its economy from Argentina so far in the 21st century, mainly for having diversified its destinations export of goods and the reduction of the exposure of the financial system, as analyzed by the CPA economist Ferrere, Alfonso Capurro.
However, the specialist warned about phenomena that still persist, such as foreign direct investment, tourism receptive and exchange difference with the neighboring country, which produces an important price gap that favors the crossings of Uruguayans to make purchases in Argentina.
When presenting during an event CPA Ferrere which also included another partner of the firm such as the economist Gabriel Oddone and the journalist Carlos Pagni, Capurro observed that the country “has managed to decouple from the Argentine economy, through the diversification of its export destinations and the reduction of the exposure of the national financial system.”
The economist highlighted the growth of GDP real per capita and highlighted that Uruguay “avoided a ‘lost decade’ like Argentina and Brazil”, while he appreciated that the exports of goods They significantly reduced Argentine dependence, while the banking system reduced exposure to loans to non-residents.
The price gap and an impact more current than ever
On the other hand, Capurro put the magnifying glass on some impacts that still persist on the Uruguayan economy. Among them, he described as the main exchange difference, pointing out that “the price gap encourages outbound tourism to Uruguay and harms trade.”
At the same time, among other alarm signals, he warned about the flows of investment foreign direct and tourism receptive, noting that “it is the main source of arrival of foreign tourists.”
To its turn, Oddone described the state of the Argentine economy and said that it has been “stagnant for more than 10 years,” in the midst of “a very high fiscal deficit, a deep inflationary process, a fall in international reserves and a strong exchange rate split.”
For this reason, he considered that in the neighboring country it is necessary to “apply a stabilization plan that has as its pillars a significant fiscal adjustment and a reform of the monetary regime”, in order to “recompose the credibility of the Argentine State.”