Uruguay's Vazquez will move fast to seize initiative

Significance

The incoming government has announced that its priorities for 2015 are improved road infrastructure and programmes to increase public security and reform education. Economy Minister presumptive Danilo Astori told business representatives and regional investors in December that Vazquez's government will guarantee a good business climate, stimulate private investment and seek to increase Uruguay's participation in global trade.

Impacts

• Leftist segments led by Mujica in particular have indicated that they will not automatically support the new president's agenda.
• Poor economic outlooks in Brazil and Argentina will undermine Uruguay's growth prospects this year.
• The new government will need to tackle above-target inflation and a rising fiscal deficit, as well as boost investment.