Uruguay doubles 2017 growth estimate to 2 percent: report

Construction labourers work at a construction site in Montevideo

SANTIAGO (Reuters) – The Uruguayan government expects GDP growth of 2 percent this year, Uruguay’s El Pais newspaper reported on Saturday, doubling its previous estimate.

El Pais said the government made the projection in a recent filing with the U.S. Securities and Exchange Commission in which it also forecast a fiscal deficit in 2017 of 3.3 percent.

The revised growth estimate comes as the South American country is weighing a new international debt issue. It represents a significant increase from the government’s previous forecast of 1 percent but is roughly in line with local market expectations and projections by multilateral institutions.

In a February, the Economy Ministry said about $2.05 billion in bonds would be issued in 2017, up from $1.7 billion in 2016.

Uruguay’s fiscal deficit was 3.8 percent in the 12 months through March. The government’s official goal is to reduce it to 2.5 percent by 2019.

(Reporting by Matias Larramendi; Writing by Gram Slattery; Editing by Tom Brown)