UPDATE 1-Uruguay economic growth accelerates in 1st quarter

* GDP +4.2 percent on-year, +1.9 pct from previous period

* Construction, leisure and transport boost growth

* Economy had shown signs of losing speed in fourth quarter

MONTEVIDEO, June 14 (Reuters) - Uruguay's economy grew 4.2 percent in the first quarter compared with a year earlier, led by a construction boom, and it also rebounded against the final quarter of 2011, official data showed on Thursday.

The country's gross domestic product (GDP) rose 5.7 percent in 2011, marking a ninth straight year of growth, but the pace of expansion slowed in the last three months of 2011 to 3.5 percent year-on-year growth.

GDP shrank 1.6 percent in the fourth quarter from the previous period, but it rebounded in the first three months of this year to rise 1.9 percent.

"The growth mainly reflects increased activity in the transport, communications, trade, hotels and restaurants and construction," the bank said in a statement.

Construction activity rose 12.9 percent year-on-year, helping to compensate losses in sectors including manufacturing and electricity generation.