Uruguay's budget deficit reached four per cent of GDP during 2016, equivalent to US$2.043bn, the worst performance since 1989, according to the latest figures released by the government's statistics office, INE. 2015 ended with a budget deficit of 3.6 per cent of GDP, which also set a record only comparable to 2002 (3.7 per cent).
Government-owned cement plants have been losing money at a rate of US$40m/year. Equipment to renew one of its plants, including a kiln costing over US$200m, is reported to be abandoned in a port in their original shipment containers.
This situation has forced the government brands to buy cement from private competitors to try to maintain their share of the market.
