2017 has been a good year for Uruguay. GDP growth picked up and the unemployment rate stabilized. A relatively tight monetary policy stance and an appreciating exchange rate contributed to a notable decline in inflation since mid-2017, bringing it within the central bank’s target range for the first time in seven years. The current account has been improving and is now in surplus, while the government has reduced its fiscal deficit and continued to be able to access international markets on favorable terms.
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