Uruguay: 2025 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Uruguay

International Monetary Fund

No 2025/287, IMF Staff Country Reports from International Monetary Fund

Abstract: The 2025 Article IV Consultation discusses that Uruguay’s economy rebounded strongly in 2024 driven by a surge in agricultural exports. Growth is expected to moderate at 2.5 percent in 2025, driven by consumption and investment, fueled by the post-pandemic recovery of real wages and reduction in domestic uncertainty. While IMF staff assesses the direct impact of global trade tensions as modest, Uruguay’s economy remains sensitive to commodity price movements, global financial conditions, and regional developments. The financial sector is well-positioned to withstand severe funding pressures and macro-financial shocks. The new administration’s momentum creates opportunities to strengthen macroeconomic stability and institutions and undertake structural reforms. The five-year budget draft law projects lowering the deficit to stabilize debt in the medium term below a new debt anchor, and the new fiscal framework seeks to strengthen credibility and promote fiscal discipline. However, further efforts are recommended to put debt on a downward path. Monetary policy has been appropriately contractionary, bringing inflation and inflation expectations to the target.

Keywords: CFT capacity; inflation expectation; monetary policy framework; CFT regime; labor market; Credit; Inflation; Exports; Anti-money laundering and combating the financing of terrorism (AML/CFT); Global; South America; Central America; Caribbean (search for similar items in EconPapers)
Pages: 89
Date: 2025-10-30
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.imf.org/external/pubs/cat/longres.aspx?sk=571423 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:imf:imfscr:2025/287

Ordering information: This working paper can be ordered from
http://www.imf.org/external/pubs/pubs/ord_info.htm

Access Statistics for this paper

More papers in IMF Staff Country Reports from International Monetary Fund International Monetary Fund, Washington, DC USA. Contact information at EDIRC.
Bibliographic data for series maintained by Akshay Modi ().