Uruguay
The Uruguayan economy fell 0.5% year over year in the second quarter of 2026
Data from the Central Bank of Uruguay also showed a 0.8% decline from the first quarter in the seasonally adjusted measure. The collapse in agriculture was the main factor behind the result.
Uruguay’s economic activity contracted 0.5% in the second quarter of 2026 compared with the same period a year earlier, according to the Central Bank of Uruguay and reported by Caras y Caretas Uruguay.
According to the National Accounts report, in the comparison with the first quarter of the year Gross Domestic Product also showed a deterioration: in seasonally adjusted terms, it fell 0.8%.
The report attributed the result mainly to a 22.2% decline in the agriculture, fishing and mining sector, which had a negative impact of 1.7 percentage points on the year-over-year variation. The Central Bank of Uruguay explained that the contraction in agricultural value added weighed most heavily, especially in summer crops.
Among the factors cited are the lower soybean yield in the 2025/2026 harvest due to drought and a high comparison base from the previous season. Also affecting the result was a lower cattle slaughter for processing, although that effect was partially offset by a larger volume of milk sent to industrial plants.
According to Caras y Caretas Uruguay, other sectors helped cushion the decline. Manufacturing grew 1.9% year over year and construction advanced 4.2%, with a positive impact of 0.2 percentage points in both cases.
In industry, the boost was mainly linked to pulp production, partly because one of the plants was shut down for maintenance during the second quarter of 2025. Milling, the production of bakery and confectionery products, and activities linked to refining also grew. In the opposite direction, declines stood out in meatpacking activity and, to a lesser extent, in vehicle manufacturing.
Construction showed growth driven by residential buildings and other works, including the installation of a data center. Meanwhile, commerce, accommodation and food and beverage services increased 2.8% and contributed 0.3 percentage points.
The report also indicated increases of 2.3% in financial services, 1% in professional and rental activities, 1.1% in public administration and 1% in electricity, gas and water. By contrast, transportation and storage, information and communications fell 0.2%, as did the group made up of health, education, real estate activities and other services.
Sources
About this note. Written by El Notero with assistance from artificial intelligence, based on what was published by the cited outlet. El Notero did not conduct its own reporting on this event.
