To read the full version of this content please select one of the options below:

Economic recovery may prove vulnerable in Uruguay

Wednesday, June 21, 2017

Significance

President Tabare Vazquez’s government will face a congressional debate over the 2018-20 budget marked by the high fiscal deficit. Although ratings agencies are showing confidence by renewing Uruguay’s investment grade rating, this will only be maintained if an austere budget is approved -- at a time when the government has lost its lower house majority.

Impacts

  • The government faces unsatisfied demands from various sectors which cannot readily be addressed without increased investment and spending.
  • This in turn would undermine the fiscal position, which has been improved by an adjustment that still did not resolve underlying issues.
  • Some improvement in growth will give the government a degree of breathing space.
Expert Briefings Powered by Oxford Analytica
Stay up to date
Sign up to the Expert Daily Briefings email alert and receive up-to-the-minute analysis of global events as they happen.
*If your university does not have access to Expert Briefings, visit our information page to find out more.