Uruguay’s long-term sovereign credit ratings have recently been upgraded by S&P Global Ratings to ‘BBB+’. The transfer and convertibility assessment has been revised upward to ‘A’, indicating confidence in the country’s economic stability and its ability to meet debt obligations.
S&P’s stable outlook reflects expectations of strong fiscal execution, continued under an improved fiscal policy framework, and moderate economic growth that will limit debt increases in the coming years.
Uruguay’s improved rating is also due to the expected economic growth, which should be moderate but steady.
S&P anticipates that this growth will be driven by a diversified portfolio of investment projects in different sectors of the economy, supporting an average GDP growth of around 2.5% in the period 2024-2026.
All of this, according to S&P, should contribute to a moderate fiscal deficit and stabilization of debt levels.
Uruguay is a country with a significant agricultural sector. Therefore, investing in farmland is becoming an increasingly attractive option for both national and international investors. In this regard, it is important to consider the recent rating that the country has received from Standard & Poor’s (S&P), as this can directly impact investment in farmland in Uruguay.
For investors, this stable fiscal outlook means that investing in Uruguay’s agricultural and land sectors can be a smart choice. Uruguay has a long history of agricultural production. Its total cultivable land area is over 16 million hectares. Furthermore, the Uruguayan government encourages producers to invest in land management. Also, land access and investment opportunities in the sector, receive a supportive policy through the Republic Bank tools, thus creating a favorable environment for investors.
Uruguay boasts a variety of crops, from soybeans and corn to rice and wheat. Additionally, it is a major producer of natural and free-range beef and lamb, with a well-established and mandatory traceability system in place. The country’s agricultural sector has been growing in recent years, with an increase in production and exports. This growth is expected to continue, especially in the soybean market, which has seen a rise in global demand.
Uruguay also offers a favorable regulatory environment for foreign investors. They can invest in the country under the same conditions as domestic investors. The country has a stable and transparent legal framework. Also, trade agreements with several important countries, which are improving access to international markets. Furthermore, the Uruguayan government has taken measures to reduce bureaucracy and promote business development, making investing in Uruguay easier and more attractive.
Uruguay has developed favorable regulatory policies for foreign investors, taking measures to encourage investment across all sectors of the economy. Investing in farmland in Uruguay can be an excellent way to diversify an investment portfolio and generate returns through direct exploitation or leasing.
We provide the link to the full S&P report here:
