The government also expanded its outlook for growth in gross domestic product to 4 percent for next year from 3.5 percent, Economy Minister Alvaro Garcia said.
Uruguay's gross domestic product swelled 1.9 percent in the third quarter compared with the same period last year, and 2.5 percent when compared to the second quarter, the central bank had said on Tuesday.
'The economy continues to recover in the third quarter... With these new figures we can now say that we'll be closing 2009 with 2 percent growth,' Garcia told reporters.
Agricultural exports and power generation have helped drive growth.
President Tabare Vazquez in September projected economic growth of 1.5 percent to 1.7 percent this year, but the economy ministry had maintained its official outlook at 1.2 percent until it was raised today.
Uruguay's economy will expand this year for a seventh consecutive year. The country avoided a recession despite the global slump this year.
The ministry maintained a forecast of a fiscal deficit this year of 2.4 percent of GDP, after interest payments.
The South American beef-exporting country of 3.3 million people recently elected former urban guerrilla leader Jose Mujica as president.
Mujica, from the same center-left coalition that is currently in power, is expected to continue market-friendly policies. But with the deficit widening, will also be faced with challenges on the government spending front.
(Reporting by Conrado Hornos; Writing by Luis Andres Henao; Editing by Fiona Ortiz and Diane Craft) Keywords: URUGUAY ECONOMY/ (conrado.hornos@reuters.com; +5982 902 17 39; Reuters Messaging: p_avila.yahoo.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
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