Uruguay's Q1 growth hurt by drought

Date:06-17-2009

Uruguay's economy grew 2.3 percent in the first quarter compared with the same period of 2008, but shrank versus the final quarter of last year for the first time since late 2002, the central bank said on Monday.

The country's agriculture-driven economy shrank 2.9 percent in the first quarter compared with the fourth quarter of 2008 as a severe drought compounded the impact of a global economic downturn.

This marked the first contraction versus the previous quarter since the fourth quarter of 2002, government data showed.

Agricultural activity also contracted 1.8 percent, hit by months of dry weather.