LatinNews Daily - 17 July 2020

* Uruguay’s central bank (BCU) has released its second quarterly monetary policy report of 2020, in which it notes that it expects the Uruguayan economy to return to pre-coronavirus (Covid-19) pandemic levels by the beginning of 2021. Uruguay’s economy went into technical recession in the first quarter this year, with a 1.6% quarterly contraction in GDP (and a -1.4% variation year-on-year). Indicators for foreign trade, consumption, and activity in different sectors in the second quarter of 2020 point to a continued deterioration of the economy. But the BCU notes that “economic activity began to show signs of gradual reactivation from May”, citing the country’s successful management of the pandemic, allowing for the lifting of containment measures – the country had recorded just 1,009 cases of Covid-19 and 31 deaths as of 15 July. Despite areas such as tourism, leisure activities, and parts of the services sector remaining badly affected, and the prevailing uncertainty of the global economic scenario, the BCU is optimistic that Uruguay will see positive growth in the third quarter.

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