Uruguay's economy grew 3.9% in 2012

Mar 28, 2013, 1:14 PM EDT
Uruguay's Economy Minister Fernando Lorenzo (R), newly acclaimed president of the LIII Assembly of Governors of the Inter-American Development Bank (IDB) and the Inter-American Investment Corporation (IIC), speaks with Uruguay's President Jose Mujica,
AFP/Getty Images

Uruguay's economy expanded by 3.9% in 2012 against a revised 6.5% in 2011, buoyed by booming construction and strong growth in transportation and communications, the cental bank said. Inflation remains a concern for policymakers. It slowed slightly in 2012 to 7.5% but was still well above the central bank's target of 4%–6%. The central bank raised its benchmark interest rate by 25 basis points to 9.25 percent in December and held it there in March.