IMF Staff Country Reports

Uruguay: Selected Issues

Publication Date:

May 8, 2013

Electronic Access:

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Summary:

Uruguay’s inflation and inflation expectations exceed the inflation target, and the gap has been widening in recent years. To help bring it to the mid-point of the target, Banco Central del Uruguay (BCU) needs to maintain a tightening bias in addition to strengthening its communication. This paper examined the factors behind the composition of FDI flows to Uruguay and suggested that strong institutions and macroeconomic stability have helped attract FDI to the secondary and tertiary sectors. Flexibility of the labor market, financial deepening, and the quality of infrastructure can further this improvement.

Series:

Country Report No. 2013/109

Subject:

Balance of payments Central bank policy rate Consumer price indexes Financial services Foreign direct investment Inflation Inflation targeting Monetary policy Prices