A deep drought and global slowdown will probably slash Uruguay’s growth to 1.3% this year followed by an expansion of 3.7% in 2024, according to a summary of the government’s annual budget bill.

Inflation is expected to slow to 6.7% at the end of 2023 and fall further to 5.8% at the end of next year, according to the document published on the finance ministry’s website.

• Central govt deficit seen unchanged from last year at 3.2% of GDP in 2023, narrowing to 2.7% next year
• Bill forecasts total govt bond issuance of almost $4.3b this year and about $4b in 2024
• Govt will lift net debt ceiling for 2023 to almost $2.9b to fund drought response
• NOTE: The annual budget bill submitted to Congress on June 30 updates the govt’s five-year budget approved in 2020