Uruguay raises 2010 growth target to 6.5 percent

MONTEVIDEO, Aug 31 (Reuters) - Uruguay's government has raised its forecast for 2010 growth to 6.5 percent from a previous outlook for expansion of 5.1 percent, the budget bill presented to Congress showed on Tuesday.

The government of the small ranching nation expects gross domestic product (GDP) to grow by 4.5 percent in 2011, up from a previous estimate of 4.2 percent.

Inflation is seen at 6.6 percent this year, slowing slightly to 6.0 percent next year.

The South American country's economy has grown every year since 2003, when it emerged from a four-year recession.

Economic growth hit 2.9 percent in 2009, marking a seventh straight year of expansion, helped by agricultural exports and power generation despite the global recession. That beat the official target of 2 percent.

(Reporting by Conrado Hornos, Writing by Helen Popper)

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Keywords: ECONOMY URUGUAY/GROWTH

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