Uruguay: Selected Issues

International Monetary Fund

No 2025/288, IMF Staff Country Reports from International Monetary Fund

Abstract: This Selected Issues paper provides a broad view of Uruguay’s structural reform landscape, identifying areas where policy action can unlock innovation, productivity growth and global competitiveness. The analysis indicates that well-targeted reforms in credit markets, trade facilitation, and labor market flexibility could increase output growth by up to 1.5 percentage points over the medium term, while advancements in artificial intelligence (AI) could raise gross domestic product by as much as 10 percent over the next 30 years. Additionally, the paper analyze the granular impact of household- and firm-level constraints, highlighting the need to foster innovation and AI preparedness, reduce regulatory barriers, and enhance trade competitiveness. The paper suggests that structural reforms aimed at closing gaps in areas such as competitiveness and harnessing the benefits of AI will be essential to enhance Uruguay’s growth potential. The paper concludes by outlining a set of reform priorities, highlighting the potential benefits of financial deepening, AI adoption, and other measures to enhance global competitiveness.

Keywords: tax expenditure; staff team; trade reforms in Uruguay; GIMF model; IMF country; Tax expenditures; Labor markets; Exports; Caribbean; South America; Central America; Global; Southeast Asia; Asia and Pacific (search for similar items in EconPapers)
Pages: 62
Date: 2025-10-30
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