UPDATE 1-Uruguay GDP jumps rose 13.2 pct from Jan-Sept

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Wed Dec 17, 2008 3:08pm EST

(Updates with details of sector growth, main driver)

MONTEVIDEO Dec 17 (Reuters) - Uruguay's economy grew 13.2 percent in the first nine months of the year compared with the same period in 2007, buoyed by booming pulp production, the central bank said on Wednesday.

The economy also grew 3.2 percent in the third quarter compared with the second quarter, the bank said.

"In the nine-month period, production was fueled by external demand and also domestic consumer spending and investment," the central bank said in a report.

The government forecasts the mainly agriculture-driven economy will expand 10.5 percent this year, which would mark a sixth straight year of growth for the South American country located between Argentina and Brazil.

But the outlook for 2009 is not as rosy. Earlier this month, the government cut its growth forecast to 3.0 percent from a previous estimate of 4.5 percent due, citing the global economic slowdown.

The manufacturing sector grew 19.3 percent in the January-September period, mainly because of pulp production at a plant owned by Finland's Metsa-Botnia MRLBV.HE (UPM1V.HE).

The transportation and communications sector jumped 32.8 percent, while activity in the farm sector expanded by 9.8 percent, the bank said. (Reporting by Conrado Hornos; Writing by Kevin Gray and Hilary Burke; editing by Gary Crosse)

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