Growth was based principally on the positive performance of energy and telecommunications supply, agriculture and livestock and financial intermediation, says the central bank report. A more rainy first quarter than in 2012, helped agriculture and hydroelectric generation. This had an impact because hydro generated electricity has a greater gross aggregate value than that from thermal plants.

Transport, storage and communications increased 4.4% but this was mainly because communications more than compensated a poor performance of storage and transport.

In the item transport ‘remains as a big setback the lesser activity from air transport as a direct consequence of closing down Uruguay’s flag carrier Pluna”, said the central bank report.

The Uruguayan government expects 4% growth for full-year 2013, while private analysts forecast more modest expansion of 3.59%, according to a central bank poll.

In related news the latest Outlook from the World Bank forecasts that Uruguay’s economy this year will expand 3.8% and 4.1% in 2014, and 4.3% in 2015, compared to 3.3% and 3.8% for the Latinamerican region in the short and medium term.

MercoPress