Uruguay
Crosses in the Uruguayan Senate over the growth target after second-quarter GDP fell
Pedro Bordaberry called on the Ministry of Economy and Finance to revise its 2026 forecast following the Central Bank data. Gabriel Oddone replied that, for now, there are no grounds to change it.
The debate over the Rendición de Cuentas in the Senate added a strong discussion this Tuesday about the state of the economy, after the Central Bank of Uruguay reported a year-on-year drop of 0.5% in GDP between April and June 2026.
According to the stenographic record of the session cited by la diaria, Colorado Senator Pedro Bordaberry told the delegation from the Ministry of Economy and Finance, led by Gabriel Oddone, that the data show a performance well below what is needed to reach the official projection of 1.6% annual growth. He also noted that in the second quarter the economy fell 0.8% compared with the first and that in the first half-year the increase was 0.3%.
Bordaberry said the minister must correct the forecast to provide certainty to economic agents and mentioned, according to la diaria, warnings from the Autonomous Fiscal Council about the impact that lower growth could have on the structural fiscal result if compensatory measures are not adopted.
From both the government and the opposition there were also other readings. National Party Senator Sergio Botana considered the issue delicate and asked not to rush a definition from the ministry, although he admitted that the figures known so far serve as a warning sign. For his part, fellow National Party Senator Sebastián da Silva said the country would be entering a stage of stagnation that could lead to recession.
Oddone responded in committee and before the press that the data released by the BCU did not surprise the economic team, since the MEF was handling a scenario of negative year-on-year variation of between 0.5% and 0.7% for the second quarter. He added that, if the contraction in the agricultural sector is excluded, the economy shows year-on-year growth of 1.4%, a figure that, although below the annual target, remains in line with the government’s forecast.
The minister also said there will only be changes to the projection when there are diagnostic elements that force him to do so. In that context, he stressed that for the moment there are no reasons to alter either the economic forecast or the fiscal targets included in the Rendición de Cuentas.
At the same time, the final stretch of the bill was also marked by the political dispute over its approval. According to la diaria, Frente Amplio Senator Daniel Caggiani announced that there will be no new review of the text, so the add-ons and substitutes promoted by the opposition will not be incorporated. From the National Party, Rodrigo Blás questioned that decision, while the president of the Budget Committee, Sebastián Sabini, defended the government’s position and said that within the opposition only Cabildo Abierto was willing to negotiate.
The bill is scheduled to be voted on this Friday in committee and to begin debate in the Senate plenary on Monday.
Sources
About this note. Written by El Notero with the assistance of artificial intelligence, based on what was published by the cited outlet. El Notero did not do its own reporting on this event.
