Press Release No. 24/87

Statement by IMF Deputy Managing Director Antoinette M. Sayeh at the Conclusion of Her Visit to Uruguay

March 15, 2024

Montevideo, Uruguay: International Monetary Fund Deputy Managing Director, Antoinette M. Sayeh, issued the following statement today in Montevideo at the conclusion of her visit to Uruguay:

“I wish to thank Vice-president Beatriz Argimón, Minister of Economy and Finance Azucena Arbeleche, President of the Central Bank of Uruguay Diego Labat, and other senior officials for their hospitality and engagement. I was pleased to have the opportunity to hear about recent economic developments, including the normalization of rain conditions following a once-in-a-century severe drought, which should have a positive impact on growth this year.

“During my visit I have learned about the country’s notable track-record of macroeconomic stability and of its strong institutions. The implementation of a new fiscal framework during the pandemic should be lauded. The authorities’ efforts to reduce debt to pre-pandemic levels amid difficult external conditions are commendable. Furthermore, Uruguay has made significant progress with upgrading its monetary policy framework. Following careful monetary policy management, inflation declined during 2023 and has remained within the Central Bank’s target band for the last nine months. This is particularly important because low-income households suffer disproportionally from high inflation.

“Uruguay’s implementation to date of sound macroeconomic policies in a challenging environment has enhanced the country’s resilience to shocks. I welcomed the authorities’ efforts to support a state-of-the-art innovation ecosystem, an innovation hub, that could make Uruguay a regional research and innovation powerhouse. Together with the education reform, these efforts could promote skilled employment and boost non-traditional exports and contribute to raising the economy’s growth potential.  

“I also welcomed the authorities’ climate-resilient, green, and sustainable policies. Uruguay remains at the forefront in the implementation of climate change policies. The majority of electricity generation comes from renewable sources and the country is promoting climate-smart agriculture and livestock practices. Uruguay is a pioneer in green financing, having successfully issued sustainability-linked bonds and negotiated new innovative loans linked to climate targets with other international financial institutions.”