An 3.7% increase in economy in the second quarter, compared to the same period in 2013, is consistent with the official projection of a 3% expansion for the year, as confirmed by the Minister Mario Bergara. He added that Uruguay, which product grew above the average of Latin America, Europe and United States, used this performance to decrease poverty, unemployment and increase household income.
In his statements to the press, Minister Bergara emphasized that the 3.7% economic growth in the second quarter of this year, compared to the same period in 2013, and of 2.0% compared to the same period in the immediately preceding year, is in line with the growth projections of 3% estimated for 2014.
He pointed out this will be an attractive performance, although slightly below previous years, as predicted.
Figures disclosed on Monday by the Central Bank of Uruguay are very positive compared to the challenges faced by United States and, in particular, Europe. The rest of Latin American countries, such as Brazil, which economy is expected to have an increase below 1% and Argentina, which is stagnated, are going through a difficult situation as well.
He added that, in general, in the second half of the 20th century, the average growth of Uruguayan economy was lower than 2%.
Responding to the press about the stance of the opposition parties, who affirm that Uruguay did not take advantage of the economic growth cycle, Bergara assured this expansion went hand in hand with a diversification of the productive structure and its exports.
«Uruguay currently exports goods to over 140 countries» he asserted.
This also had an impact on basic socio-economic indexes, such as unemployment, which decreased from 17% in 2003 to its current all-time low below 6%, and poverty, which went from 40% of Uruguayans to a little more than 10% in the same period.
He explained this economic upturn caused household income to increase substantially and it is readily noted that Uruguayans have more availability of resources and are consuming much more than a decade ago, which is not a issue as long as this occurs within a framework of macroeconomic balance.
Bergara further emphasized that the Uruguayan State’s financial conditions have dramatically improved and risks have substantially decreased. He pointed out that before 2005 the country was heavily indebted and lacked financing sources.
In this regard, he stated: «We owed a lot of money, in the short term and all in dollars, while now this burden has materially reduced (net debt went from 70% of GDP to 23%) and involves a longer term, with a repayment timeframe of 15 years.»
«Furthermore, we have converted two thirds of the national debt into pesos and the Central Bank is in local currency.»
