MONTEVIDEO (Reuters) - Uruguay’s economy grew by 13.1 percent in the first half of the year from the same period a year ago as a controversial foreign-owned paper pulp mill came on line, the central bank said on Friday.

Analysts were surprised by the scale of the economy’s expansion during the first six months of 2008 -- its sixth year of consecutive growth following a deep crisis.
“We weren’t expecting this figure,” said economic analyst Ramiro Almada from the Oikos consulting firm.
Alfonso Capurro from economic consulting firm Cinve estimated that about 3 percentage points of the growth figure were due to the start of paper pulp production at a mill owned by Finland’s Metsa-Botnia group.
Friday’s central bank statement showed the transport and communications sector expanded 31.9 percent, while the manufacturing, which includes the pulp plant, grew 20.5 percent.
The central bank also said gross domestic product rose 4.6 percent in the second quarter from the first quarter of 2008.
Uruguay’s government forecasts full-year growth at 6.5 percent, although the economy minister said recently it could top 8 percent. The economy expanded 7.4 percent in 2007.