GDP growth was linked to the performance of incoming tourism, the launch of UPM 2 and the improvement of agriculture, now that the drought was over.
He GDP grew by 2% year-on-year during the last quarter of 2023 and closed the year with a growth of 0.4%, driven by the improvement in agriculture after the drought, the launch of UPM 2 and the performance of receptive tourism, according to the data of the Central Bank of Uruguay (BCU).
The National Accounts Report of the BCU thus reflected an improvement in the economic activity higher than analysts’ expectations. Even the IMAE It anticipated an improvement of close to 0.1% for 2023, as a result of an annual increase of 1.5% in the fourth quarter.
This growth was driven in the fourth quarter of last year by the agricultural sector and the “rebound effect” after the drought, marking an improvement of 59.4% year-on-year, largely due to the agriculture.
At the same time, in that period the added value of the Manufacturing industry, with a drop of 5.5% driven by lower activity in Ancap due to refinery shutdown The Tile.
GDP data for 2023
By disaggregating last year’s data published by the BCU, It is clear that, from the supply point of view, volatility was highlighted due to the impact of the drought and the water crisis, refining loss Ancap and the effect of the end of the work of UPM 2.
Specifically, the recovery of agriculture contributed 5% to activity, while there were significant declines in electric power, gas and water (9.2%), construction (5.6%) and the manufacturing industry (1.6%).
At the same time, with respect to the demand, the contribution of the private consumption of households, with an increase of 3.6%, as well as the recovery of 0.7% in exports of goods and services.
In contrast, the gross fixed capital formation due to the aforementioned end of the construction of the second UPM plant and the closure of the work of the Central Railway.
Source: Ambito
