Uruguay 2018: A Year of Mixed Signals and Open Questions

Abstract

Uruguay faced significant headwinds in 2018. The Frente Amplio is confronting a slowing economy, and its most challenging election yet. Overall, economic growth is positive, but reduced from the previous year; inflation, unemployment, and the deficit are above target rates. After the loss of a deputy in 2016, the Frente returned to a strong legislative efficiency rate in 2018. However, the party remains vexed by President Tabare Vazquez’s ever lower approval rating, which dipped to a nadir of 30% by year’s end. The party’s challenges are extensive. Economic stagnation, low presidential approval ratings, a slim parliamentary majority, and disaffected voters fuse to create substantial unpredictability for the 2019 elections and the country’s future political configuration.