The Uruguayan economy fell 0.2% in the third quarter, compared to the same period in 2022

2023-12-15 03:12:16

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The Central Bank of Uruguay (BCU) announced today that the South American country’s economy suffered a contraction of 0.2% in the third quarter of 2023 compared to the same period of the previous year, according to data revealed in its latest National Accounts report. .

Despite this slight decline, in seasonally adjusted terms, economic activity showed signs of recovery, registering a growth of 1.0% compared to the second quarter of 2023, according to the BCU report.

The drop in the Gross Domestic Product (GDP) in relation to the third quarter of 2022 was mainly influenced by the decrease in energy generation (-11.3%) and lower activity in the construction sector (-8.3%). 6%), attributed to the completion of the works of the Finnish paper company UPM, according to a report in the financial magazine Barron’s, published by Dow Jones & Company.

On the other hand, the agricultural sector stood out with a positive performance of 9.6%, driven by an increase in livestock production, increases in the delivery of milk to processing plants, and a growing demand for wood for industrial purposes.

Uruguayan exports continue to fall

Regarding external demand, a 9.2% decrease in exports was observed, mainly due to lower sales of soybeans, although partially offset by the increase in exports of cellulose, beef cuts and live cattle. In addition, exported services, especially those related to information technologies, experienced a reduction.

The report also highlighted the increase in private consumption by 3.4%, with a positive impact from transportation expenses linked to trips abroad, especially to destinations in Argentina, according to statements from the BCU.

Economic experts Nicolás Cichevski and Aldo Lema agreed that the GDP for the third quarter of 2023 is in line with previous projections. It should be remembered that in the second quarter, the Uruguayan economy contracted 2.5% compared to the same period of the previous year, mainly affected by a historic drought.