MONTEVIDEO, Feb 28 (Reuters) - The International Monetary Fund lowered its forecast for economic growth in Uruguay this year to 3 percent from its previous estimate of 3.3 percent, the IMF’s deputy managing director said on Friday.
Naoyuki Shinohara told reporters that the revision is due to lower growth expected in the small South America country’s neighbors Argentina and Brazil and lower prices for Uruguayan exports.
The IMF estimated gross domestic product would expand by 3.3 percent in October.
“Growth is a little bit slower because of the impacts that come from neighboring countries,” said Shinohara. “We think the economic situation in Uruguay is solid.”
Currency devaluations in Argentina and Brazil in recent months have softened domestic demand and curbed investments.
Last week Uruguay also lowered its forecast for 2014 growth to 3 percent, down from its previous estimate of 4 percent.
The government expects gross domestic product to have grown 4 percent last year.