IMF review praises Uruguay's 'prudent macroeconomic policies' but warns of inflation risks

Published November 20, 2014

The International Monetary Fund is heaping praise on Uruguay.

The IMF's annual review Friday describes the small country wedged between Brazil and Argentina as a model of "spectacular growth" and "prudent macroeconomic policies."

IMF regional chief Ulric Erickson von Allmen also praised Uruguay's "deft debt management," ''robust banks, and a lack of apparent bubbles" that have protected Uruguay's economy from outside shocks. Strong real wage growth is boosting the nation's consumer economy.

The IMF estimates Uruguay's inflation will be 4 percent next year — much less than its neighbors but still worrisome enough to require restraining wages and government spending.

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