Uruguay
Oddone said Uruguay’s GDP decline was anticipated and kept the official forecast for 2026
The Economy Minister linked the second-quarter contraction to the impact of the drought on agriculture. He said that, without that sector, activity showed year-on-year growth and that the official estimate of 1.6% for 2026 remains unchanged for now.
Economy Minister Gabriel Oddone said Wednesday that the contraction in gross domestic product recorded in the second quarter had already been anticipated by the economic team and attributed it to the effect of the drought in the first months of the year, according to Subrayado.
According to the outlet, Oddone said the negative figure is concentrated in agricultural activity and stressed that, excluding that sector, the economy grew 1.4% in year-on-year terms. In that line, he said the 0.5% decline is entirely due to the climate phenomenon in the first quarter and that the overall trend in activity remains within what the government had projected.
Subrayado also reported that the minister reaffirmed the growth projection of 1.6% for all of 2026, which he described as “absolutely realistic.” However, he warned that this is an estimate sensitive to possible weather factors and to economic developments in the second half of the year, so the economic team is closely monitoring the situation and would make adjustments if it deemed necessary.
On Tuesday, the Banco Central del Uruguay reported that the Uruguayan economy fell 0.8% in the second quarter from the previous one in seasonally adjusted terms, Subrayado reported.
According to that outlet, Oddone appeared this Wednesday before the Senate committee analyzing the Rendición de Cuentas bill, which will be approved without changes to the version passed by the Chamber of Deputies.
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.
