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LatinNews Daily - 22 May 2020

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In brief: Uruguay cautiously optimistic on economic recovery

* The monetary policy committee (Copom) of Uruguay’s central bank (BCU) has announced that the decline in the country’s economic activity due to the coronavirus (Covid-19) pandemic will be less marked than previously projected. In its latest monitoring meeting, the Copom concluded that “a gradual return to activity in certain sectors” has enabled it to adopt a more optimistic outlook, although it cited no specific figures and noted that the national economy shows signs of the negative global impacts of the pandemic. The Copom had previously expected businesses to pick up their activity later in the year, in the third quarter. The Copom notes that it continues to closely monitor growth and inflation expectations, and maintains a monetary policy focused on guaranteeing liquidity. Uruguay’s annual inflation rate currently stands at 10.86%, outside the BCU's target range, while its economy is expected to contract by 4% this year, according to the April forecast by the United Nations Economic Commission for Latin America and the Caribbean (Eclac).