In the 2019 presidential and parliamentary elections, the opposition defeated the ruling party. The presidential candidate of the Partido Nacional, Luis Lacalle Pou, won with the support of a coalition of five center-right parties, which was also able to secure working majorities in both the Senate and the Chamber of Representatives.

The excellent performance of the economy between 2005 and 2015 and several important structural reforms have ensured the country’s economic stability. However, in recent years, economic growth had slowed due to the fall in the prices of export products, which led to an increase in the fiscal deficit.

President Lacalle Pou’s priorities to restore the country’s competitiveness and adjust public finances moved into the background with the outbreak of the COVID-19 pandemic. His government handled the contradiction between economic and health care policy goals in a flexible and innovative way. Nevertheless, the government will have to increase social spending to deal with the socioeconomic consequences of the pandemic.

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