Uruguay GDP grows 2.5% Q o Q

GDP grew 2.5%

The central bank on Tuesday released the National Accounts Quarterly report for July-September. According to the data, the Gross Domestic Product (GDP) grew 2.5%.

The Uruguayan economy grew for the second consecutive quarter. The quarter on quarter growth is 2.5%, bringing the cumulative growth of GDP at 1.7% so far this year.

Uruguay’s year started poorly with a fall of 2.5% in the first quarter of 2009. However, Uruguay quickly recovered and helped to avert a recession, commonly defined as the fall of GDP for two consecutive quarters.

The third quarter growth exceeded forecasts last collected by the Commercial Bank of Uruguay and caused the economic team to revise upward the growth forecast for this year, which currently stands at 1.2%.

The economic team had already announced it would correct upwards the growth projections after knowing the figures for the third quarter.

Sectors

In seasonally adjusted terms (compared with same month of previous year), most sectors showed higher positive rates in the third quarter compared with the previous.

The growth sectors were: Agriculture (6.8%) and the Electricity, gas and water (96.3%).

The industry Electricity, gas and water presented a growth of 34.6% in the third quarter compared to the same quarter last year. This level of growth was mainly due to the production of electrical energy. This # was distorted due to drought which causes them to generate electricity differently.