“Country Risk Service Uruguay March 2011 Updater” added to ReportBuyer.comMr Mujica convened an unprecedented meeting between his cabinet and the education authorities to discuss the government's plans for education reform, which will include the extension of the school year in 2011.
By: Report Buyer Overview The president, Jose Mujica, of the centre-left Frente Amplio (FA) coalition, will struggle effectively to implement reforms announced in his first year owing to pressures from the left of the FA and its close allies in the powerful unions. A break in the coalition appears unlikely, given its history of electoral success and the fact that Mr Mujica is likely to abstain from reforms that would endanger the integrity of the coalition and its narrow congressional majority. After estimated growth of 8.3% in 2010, real GDP will decelerate to more sustainable growth rates of 4.6% in 2011 and 4.4% in 2012, owing to an easing of global growth and domestic capacity constraints. As a result of strong domestic demand and high international prices, the Economist Intelligence Unit expects consumer price inflation to reach 7.5% at year-end 2011, breaching the upper limit of the 4-6% target range for the year. Driven by high prices for commodity exports and abundant global dollar liquidity, the peso will continue to appreciate in 2011, before a rising current-account deficit and higher global interest rates in 2012 reverse the trend. Although the current-account will register a deficit in 2011-12--as firm domestic demand draws in imports--it will remain manageable and covered by inflows of foreign direct investment (FDI). Key changes from last month Political outlook Mr Mujica convened an unprecedented meeting between his cabinet and the education authorities to discuss the government's plans for education reform, which will include the extension of the school year in 2011. Economic policy outlook Above-target inflation in February, rapid credit growth and strong domestic demand suggest that overheating risks for the Uruguayan economy are increasing, a scenario that is likely to accelerate monetary tightening. Economic forecast Owing to renewed demand from the corporate sector, in January total credit to the private sector grew by 21% year on year in nominal terms, raising concerns about the potential overheating of the economy. This report covers the following industry codes: SIC Code: 1;37 NAICS Code: 11;336 Country Risk Service Uruguay March 2011 Updater: published 3/11/2011 is available at: http://www.reportbuyer.com/ # # # Report Buyer is a UK-based independent online store supplying business information on major industry sectors. These include the Automotive Industry, Banking & Finance, Energy & Utilities, Food & Drink, Telecoms and Pharma & Healthcare. End
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