The monthly indicator of the Central Bank of Uruguay (BCU) reflected the fall, influenced in part by the “calendar effect.”
The economic activity fell a seasonally adjusted 1.2% in March, according to the latest report from the Central Bank of Uruguay (BCU), thus confirming that the different sectors failed to meet expectations in the first quarter of the year.
This is how it arises from Monthly Economic Activity Indicator (IMAE), which reflected the second consecutive monthly decline, this time influenced by the “calendar effect” that represented the fact that last March had fewer working days due to the holidays of the Tourism Week, which in 2023 took place in April, so the same thing would happen but in reverse with the April data.
If analyzed in year-on-year terms, the fall in GDP in March it was 1.1% compared to the same month in 2023, while the variation in the cycle trend with respect to February 2024 remains positive, although only 0.1%, according to the study by the BCU.
It is worth remembering that the IMAE had reflected a slight decline of 0.1% seasonally adjusted in February and an increase of 0.8% in January. Furthermore, March was the first month with a decline in activity compared to 2023, after the interannual increases of 1% and 0.1% in the previous months.
A first quarter with a drop in economic activity
Although some indicators show an expanding economy, a report from the Observatory of the Economic Situation of the Catholic University of Uruguay (UCU) revealed in the last hours that “the beginning of the year was less dynamic than expected.”
When disaggregating by items, imports of intermediate goods was one of the most affected, with a drop of 11% year-on-year, followed by exports and imports (excluding energy), which suffered a drop of 8%; and imports of capital goods, with a decrease of 7%.
Further back appeared the industry of core, with a loss of 6%, the manufacturing industry, with a decrease of 5.5%; placements for tourism, with a drop of 4%; to collection of VAT, with a decline of 2%; and the collections of the DGI, which fell 1%.
Source: Ambito
