Investor Appeal Facing Wage Test

BMI View: With the start of wage negotiations raising the spectre of above inflation salary rises, new President José Mujica is facing the sternest test so far of his commitment to maintaining the business friendly policies of previous governments. Should the government fail to keep wage increases at a sustainable level, we caution that investor confidence in Uruguay could be eroded, prompting some manufacturers to start to look elsewhere for cheaper labour.

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