Uruguay’s economy managed to break away from Argentina’s in the 21st century, an expert has found.

September 15, 2023 – 16:24

CPA Ferrere Economist Alfonso Capurro, while cautioning about exchange divergence, noted points to highlight.

Photo: Freepik

Uruguay It was able to “disconnect” its economy Argentina So far in the 21st century, mainly for diversifying its goals export of goods And as CPA economist Ferrer examines, a reduction in exposure to the financial system, Alfonso Gaburo.

However, the expert cautioned that such phenomena as foreign direct investment will continue. Tourism acceptance and Exchange differential with an important producing neighbour price gap This helps the Uruguayans to buy the crossovers Argentina.

When presented during an event CPA Ferre This includes another stakeholder of the firm such as an economist Gabriel Odon and journalist Carlos Bagni, Gaburo noted that “Argentina was able to decouple itself from the economy by diversifying its export destinations and reducing exposure to the national financial system.”

Economist highlighted the development GDP Real individual and highlighted it Uruguay Avoiding the “lost decade” etc Argentina and Brazil”, He appreciated that Export of goods They significantly reduced their dependence on Argentina, while the banking system reduced its exposure to loans to non-citizens.

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Graphic: CPA Ferrare

The price gap and impact is more current than ever

On the other hand, Gaburo put a magnifying glass on some of the impacts that still linger on Uruguay’s economy. Among them, he described himself as the foremost exchange differential, “The price gap encourages outbound tourism to Uruguay and affects trade,” he pointed out.

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At the same time, among other alarm signals, he warned about flows Investment Foreign direct and Tourism “It is a major source of foreign tourist arrivals,” he notes.

On your turn, Odo It described the state of Argentina’s economy and said it had been “stagnant for more than 10 years”. lack of funds, A deep inflationary process, a decline in international reserves and a strong exchange rate split.

For this reason, he considered it necessary to “restore the credibility of the Argentine government in the neighboring country, using a stabilization plan whose pillars include significant fiscal adjustment and reform of the monetary regime.” “

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