The Orsi government's five-year budget law aims to cut the deficit gradually, mainly through revenue, while prioritising child poverty and security. Growth is moderate at around 2% and the country keeps investment-grade ratings.
What a Korean company can do now
Government · leader
President Yamandú Orsi (head of state and government since 1 March 2025, Frente Amplio)
Key national agenda
- Gradual reduction of a 4%+ of GDP deficit and tax adjustments
- Unified, larger cash transfers to cut child poverty by 25%
- Security (300 more police at the Interior Ministry)
- Reallocation of education funding
- Review of past contracts (Arazatí water, navy patrol vessels)
Government programmes
2025-2030 five-year budget lawTotal not confirmed
717 articles; deficit cut mainly via revenue, priorities on growth, jobs, social protection and security. In force from 1 Jan 2026
2026 accountability and budget adjustment billNot confirmed
Larger, unified cash transfers to poor families, 300 more police, reallocated education money; opposition said it would vote against
Arazatí water project renegotiationNot confirmed
A commission was set up to renegotiate the previous government's Arazatí water intake project
Cancellation of two offshore patrol vesselsNot confirmed
Contract with Spain's Cardama shipyard cancelled, with legal action
Business opportunities
Integrated management system for social cash transfers
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Open this week
Video analytics and command-and-control for policing
The budget strengthens the Interior Ministry and adds police.
Ministry of the Interior
Water treatment and leak management technology
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Korean support schemes
- SME Export Voucher · KOSME — Covers certification, marketing and translation costs (available for all countries)
- KOTRA overseas market news · KOTRA — Latin America market reports and trade-office consultation requests
Official notices
- 2026-11-06 President Orsi held a bilateral meeting with Pope Leo XIV
- 2026-11-05 Called for stronger regional cooperation at the Ibero-American Summit
- 2026-11-05 Said rising female employment helped reduce poverty
- 2026-11-05 Announced comprehensive sex education and human rights curricula
Disaster · conflict · epidemic
Stable 2026-11-07
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Earth & space
Credit rating · FX
S&P BBB+ (stable) / Moody's Baa1 (stable) / Fitch not confirmed · K-SURE Not confirmed · UYU +0.3%
Sanctions
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No country-level UN, US, EU, UK or Korean sanctions programme applies.
