Since 1990 Uruguay has pursued a program of economic liberalization
which has included MERCOSUR integration, reducing deficit
spending, controlling inflation and downsizing government.
Uruguay is a founding member of MERCOSUR, the Southern Cone
Common Market--a 200 million person and 870 billion GDP
market. It is the geographical center of MERCOSUR's richest
and most densely populated zone.
The economy has performed well in the last decade, but in
1999 it entered what has become its worst and longest-lasting
recession in fifteen years. GDP declined in 1999 and 2000
in face of the 1999 Brazilian devaluation, diminished activity
in Argentina, the depreciation of the Euro against the US
dollar, higher oil prices, a tight credit policy and historically-low
commodity prices. Economic turmoil in Argentina, combined
with the dissemination of foot-and-mouth disease throughout
the country and a weak Brazilian currency are currently
preventing the economy from taking off. Zero to negative
growth is expected for CY2001.
Imports from the United States fell 27% from 1998 to 2000,
a significant shift from the 16% annual average growth experienced
between 1993 and 1998.
Inflation was reduced from 129% in 1990 to 5.1% in 2000.
Inflation of 7.0%-9.0% is projected for 2001. Social indicators
are still high by Latin American standards and some are
comparable to those of the United States. In 1997, Uruguay
enjoyed the lowest poverty level and the most even income
distribution in Latin America.
The investment climate is generally positive and the banking
system is sound. Uruguay is the only MERCOSUR country with
Investment Grade Status (and one of only two in South America).
The U.S. is the largest foreign investor, according to a
1999 government study, with a 33% share.
GENERAL INDICATORS
Area (68,036 sq. miles)
and population (3.2 million people) are about the same as
Oklahoma.
Language: Spanish
Religion: Predominantly
Roman Catholic
Type of Government: Representative
Democracy
Annual Population Growth
Rate: 0.57%
Montevideo (Capital): 42%
of total population
Life Expectancy at Birth:
72.4 years
Net Migration Rate: - 0.93/1000
Home owners: 66%
Literacy Rate: 97%
Households with access
to safe water: 98%
Poverty level: 6% (1997)
Electricity in 94% of the
country
Absence of ethnic problems
High Human Development
country according to the U.N.
Middle-high income country
according to the World Bank
Gross Domestic Product
(GDP): $ 20 billion (2000)
GDP Real Growth Rate: -1.1
(first quarter 2001), -1.3% (00),-2.8% (99)
GDP Per Capita: $ 6,000
(2000)
Industrial Production:
17% of GDP. Declined 2.5% in 2000. Principal
sectors: food, drinks &
tobacco, chemicals, textiles, leather processing.
Agriculture & Livestock:
6% of GDP. Declined 2.5% 2000. Large areas devoted to livestock
grazing, wheat, rice, corn, sorghum, fishing. Self-sufficient
in most basic foodstuffs.
Commerce, Restaurants &
Hotels: 14% of GDP. Contracted by 4.6% in 2000.
Services: Account for approximately
60% of GDP.
Budget Deficit (% of GDP):
4.0% (2000), 4.0% (1999), 0.9% (1998)
Risk Rating: Investment
Grade (Standard&Poor’s, Moody’s, Fitch IBCA)
No Personal Income Tax;
23% VAT; 30% Corporate Tax.
Over a hundred American
firms operate in Uruguay.
Labor Force: 1.3 million.
Unemployment Rate: 15.6%
(May 01), 13.4% (Avg 00), 11.2% (Avg 99)
Minimum wage rate: $82
per month (July 2001)
Average Monthly Household
Income: $700 (May 2001)
Unionization: 15.0% of
the workforce.
EXPORTS (F.O.B.): $ 2.3
billion (2000; grew 2.6% over 1999)Partners: Brazil, Argentina,
E.U., U.S.
Commodities: Processed
Meat, Textiles, Leather, Rice, Dairy,
Chemicals, Other Agricultural
Products.
Exports to U.S.: $ 180
mill. (8% of 2000 total; 28% increase in 2000)
Commodities to U.S.: Leather,
Meat, Shoes, Wool, Fish.
IMPORTS (C.I.F.): $ 3.5
billion (2000; 3.2% increase over 1999)
Partners: Brazil, Argentina,
EU, U.S.
Commodities: Industrial
Supplies, Mach.&Equipment, Oil&Fuels
Imports from U.S.: $330
mill. (10% of 2000 total; 10% decline in 2000)
Commodities from the U.S.:
Computers & parts, Radio, TV &
Telephony Equipment, Medical
Equipment, Medicines.
Import Tariffs vary between
0 and 23%. Mean tariff is 12%.
No import quotas apply.
Net External Debt: $ 3.5
billion (December 2000), 18% of GDP.
Current Account Deficit:
3.1% of GDP (2000), 2.6% of GDP (1999).
Inflation Rate (CPI): 5.1%
(2000), 4.2% (1999), 8.6% (1998)
Exchange Rate: Uruguayan
pesos ($Ur) per US$ 1 = 13.2 (July 2001)
M1: $1.0 billion (March
2001)
Central Bank net international
reserves: 2.7 billion (July 2001)
Annual interest rates charged
on loans (August 2001):
In pesos In US$
Preferential 40-45 6.5-8.8
Intermediate 45-50 7.0-9.8
Personal 50-58 10.3-14.0
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