The Central Bank of Uruguay published its estimates in the Balance of Payments and International Investment Report.
He Central Bank of Uruguay (BCU) reported in the Balance of Payments and International Investment that foreign direct investments had a much higher amount compared to the previous period, obtaining 1,672 million dollars, while experiencing a deficit of 811 million dollars.
According to the BCU report, “during the second quarter of this year, the Current and Capital Account of the Balance of Payments experienced a deficit of US$811 million. This amount was significantly higher than the same period of the previous year, when the deficit had reached USD 423 million.”
With this, the report ensures that the foreign direct investment registered in the second quarter of this year was a net inflow of 1,672 million dollars. “In this regard, it stands out, first of all, the increase in net liabilities with parent companies or other related companies abroad and/or due to a decrease in assets with said companies, for an amount of US$ 898 million,” the report details.
On the other hand, it establishes that the reinvestment of profits reached US$ 648 million, to the extent that the high income obtained by foreign companies in our country (US$ 1,668 million) was not distributed abroad in its entirety (US$ 1,020 million were distributed) and that, In addition, “capital contributions of US$ 126 million were recorded.”
Meanwhile, in terms of Gross Domestic Product (GDP) and on a rolling 12-month br, an increase of 0.8% was observed in the Current and Capital Account deficit. This is because “it increases from 2.9% of GDP in the year ending June 2022 to 3.7% of GDP in the year ending June 2023.”
Faced with this, the economist Aldo Lema He published on his social networks that this phenomenon occurred mainly as a counterpart to the fiscal deficit and in a context of almost equilibrium in the private sector.” On the other hand, he added that the BCU report confirms “the deterioration in exports of goods due to lower prices and the effect drought, the high dynamism in service exports and the boom of foreign direct investment (6.4% of GDP in the last year)”.
Source: Ambito
