In the first quarter of the year, the Uruguayan economy entered a recession as GDP fell by 1.6% compared to the previous quarter (a 0.7% contraction in the last quarter of 2019). The recession will deepen in the second quarter with the greatest impact from COVID-19 measures. Private analysts forecast that GDP will fall between 2.5% to 5% this year, while the govt.’s official projection is a drop of 3%.