Macroeconomic Forecast Uruguay

February 2008 | Macroeconomic Forecasts

The Banco Central de Uruguay (BCU) has rapidly built up its holdings of reserves in recent years, with the total reaching an estimated US$4.1bn at the end of 2007 (we had forecast US$4.0bn). This marked a full US$1bn (32%) increase on the figure for 2006, and was largely the result of major FDI inflows (associated with the Botnia pulp mill project) and significant foreign exchange purchases by the BCU. Preliminary data suggests the growth in reserves has continued at the start of 2008, reaching US$4.4bn at the end of January and representing an upside risk to our year-end forecast of US$4.5bn.

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