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Uruguay: Selected Issues

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  • International Monetary Fund

Abstract

This Selected Issues paper provides a broad view of Uruguay’s structural reform landscape, identifying areas where policy action can unlock innovation, productivity growth and global competitiveness. The analysis indicates that well-targeted reforms in credit markets, trade facilitation, and labor market flexibility could increase output growth by up to 1.5 percentage points over the medium term, while advancements in artificial intelligence (AI) could raise gross domestic product by as much as 10 percent over the next 30 years. Additionally, the paper analyze the granular impact of household- and firm-level constraints, highlighting the need to foster innovation and AI preparedness, reduce regulatory barriers, and enhance trade competitiveness. The paper suggests that structural reforms aimed at closing gaps in areas such as competitiveness and harnessing the benefits of AI will be essential to enhance Uruguay’s growth potential. The paper concludes by outlining a set of reform priorities, highlighting the potential benefits of financial deepening, AI adoption, and other measures to enhance global competitiveness.

Suggested Citation

  • International Monetary Fund, 2025. "Uruguay: Selected Issues," IMF Staff Country Reports 2025/288, International Monetary Fund.
    • Handle: RePEc:imf:imfscr:2025/288
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