IMF sees Uruguay's economy expanding in 2023 despite slowdown

Uruguay's economy will likely expand 2% this year, the International Monetary Fund (IMF) forecast in a statement released on Wednesday, adding the South American country's economic growth rate is nonetheless seen decelerating in 2023.

Uruguay's inflation rate, meanwhile, is expected to decline to 7% this year, and fall within the central bank's target range in 2024, according to the IMF forecast. "Main macroeconomic risks are derived from a worsening of external financial conditions, deterioration of international geopolitical tensions and the impact of the drought," the statement said.

The international lender added that the country's track record of implementing sound macroeconomic policies in a challenging environment has improved the economy's resilience to shocks, with only a low level of fiscal risks.