External Volatility To Persist

BMI View: Uruguay's external accounts remain volatile, on the back of shifting regional macroeconomic dynamics. While we expect the current account to rebound modestly to post a surplus of 0.5% of GDP in 2011, we believe that financial inflows will continue as domestic investors seek to take advantage of Brazil's high interest rates and strong growth, reinforcing the importance of foreign direct investment to balance of payments stability.

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