The climate for business in Latin America reached its best level in the last 11 years during the first quarter of 2024, with an improvement in Uruguay, according to the indicator of the Getúlio Vargas Foundation (FGV).
He Economic Climate Index (ICE) of the region prepared by the Brazilian Center for Economic Studies reached 107.2 points at the start of the year, reaching a maximum that it had not reached since the same period in 2013, with 109.8 points. In this scenario, it stands out Latin America in general and Uruguay in particular.
He ICE, which uses surveys of 103 specialists from 10 countries, was at 73.4 points in the first quarter of 2023, but it climbed until closing that year at 102. Thus, it was the first time since 2018 that it remained within the call favorable zone (more than 100 points) for two quarters in a row.
The improvement in the indicator had to do with the good evaluation of Brazil, which grew from 100 to 114.6. Furthermore, with the exception of Mexico and Chile, the rest of the countries in the region showed an improvement.
How is the business climate in Uruguay?
According to the FGV survey, Uruguay appears second in the ranking with the best business climate, accumulating 139.4 points, only surpassed by Paraguay, which adds up to 154.6. The podium completes it Brazil, with 114.6 points, while Mexico He has 114, completing the poker of countries in a favorable zone.
The rest of the region is in the unfavorable zone, despite the increase in its indicators. Peru It has 85.3 points, Colombia with 72.8, Chile with 72.7, Ecuador with 42.2 points, Argentina with 41.7 points (despite the increase from 26.1 promoted by the government of Javier Milei) and Bolivia completes the table with 20.8 points.
The optimism of Uruguayan companies
The expectation of companies goes in the same direction as the survey, since they anticipate “moderate optimism” for the direction of the economy. 61% of those consulted in the consulting firm’s latest Business Perspectives Survey KPMG said they have positive outlooks, while only 5% expect a moderately worse situation.
For 75.5%, the business climate is “good” or “very good”, while only 2% rated it as “bad”, with the legal security leading the ranking of good perception, with 94.1%, followed by macroeconomic stability with 93.1%, and the investment promotion regime with 84.3%.
Added to this is the fact that Uruguay is consolidated as a green hydrogen investment hub, according to the memorandum of understanding with HIF Global to build a plant in Paysandu, as well as a similar initiative by Alfanar Energy Spain in Rocha.
The same happens with the sector of technology, to the point that 80% of private capital investments in the country are concentrated in IT ventures, according to a recent report by CPA Ferrere.
Source: Ambito
