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Uruguay: Selected Issues
Author:
International Monetary Fund. Western Hemisphere Dept.
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Series:
IMF Staff Country Reports
Volume/Issue:
Volume 2013: Issue 109
Language:
English
Publication Date:
08 May 2013
DOI:
https://doi.org/10.5089/9781484395301.002
ISBN:
9781484395301
ISSN:
1934-7685
Pages:
38
Keywords:
ISCR; CR; inflation expectation; Uruguay; FDI flow; inflation dynamics; FDI allocation; FDI decision; Inflation; Foreign direct investment; Inflation targeting; Consumer price indexes; Central bank policy rate; Global; Africa; Europe
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Uruguay’s inflation and inflation expectations exceed the inflation target, and the gap has been widening in recent years. To help bring it to the mid-point of the target, Banco Central del Uruguay (BCU) needs to maintain a tightening bias in addition to strengthening its communication. This paper examined the factors behind the composition of FDI flows to Uruguay and suggested that strong institutions and macroeconomic stability have helped attract FDI to the secondary and tertiary sectors. Flexibility of the labor market, financial deepening, and the quality of infrastructure can further this improvement.
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Cover IMF Staff Country Reports
IMF Staff Country Reports
ISSN:
1934-7685
Publisher:
International Monetary Fund