Uruguay | New approach to structural risk

Summary

Taking advantage of BBVA Research's structural approach to geopolitical risk (SGR) and economic fragmentation (SEF), we analyze Uruguay’s situation in the global scenario.

Key points

• Key points:
• • Uruguay is no exception to global trends, but its geopolitical risk performance, as measured by the SGR, is well below the regional average. The positive differential is based on its high institutional quality, a sound and stable macroeconomy, and a stable neighborhood.
• • The economic fragmentation indicator (SEF) shows that the economy has become less open, which sends a very important message given Uruguay's need for trade due to the small size of its domestic market.

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