Uruguay

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Economic and political outline

Economic indicators | Foreign Trade in figures | Sources of general economic information | Political outline

Economic indicators

Uruguay went through its worst economic and financial crisis in recent history in early 2000 due to devaluation of the Brazilian real from 1999, the Argentinean failure of paying back its external debt, and the outbreak of foot and mouth disease that lead to the closure of all meat exporting markets. The economy in Uruguay has started reviving after 2004 but cope nowadays with a declining growth rate : 7.0% in 2006, 5.2% in 2007 and a forecast of 3.8% for 2008. Nevertheless, Uruguay enjoys a positive investment climate, with a strong legal system and open financial markets. It grants equal treatment to national and foreign investors. Though exports are rising and tourism is growing, the economy still remains fragile: public debt is increasing, unemployment affects nearly 20% of the active population and 30% of the population lives below the poverty line.

Main indicators	2006	2007	2008	2009	2010
GDP (billions USD)	20.00	24.43	32.26	29.16e	29.82e
GDP (constant prices, annual % change)	4.6	7.6	8.9	1.3e	2.0
GDP per capita (USD)	6,250	7,635	10,082e	9,112e	9,320
Inflation rate (%)	6.4	8.1	7.9e	7.0e	6.7
Unemployment rate (% of the labor force)	-	-	7.8	-	-
Current Account (billions USD)	-0.46	-0.20	-1.16e	-0.50	-0.72
Current Account (in % of GDP)	-2.3	-0.8	-3.6e	-1.7e	-2.4

Source: IMF - World Economic Outlook Database

Note: (e) Estimated data

Main sectors of industry

Uruguay has rich agricultural land, almost 90% of which is devoted to livestock raising. Cattle, sheep, horses, and pigs are the major livestock animals. Rice is the major food crop, followed by wheat, corn and sugarcane. There also is a fruit and garden market gorwing industry as well as wine grapes growings all along the Rio de le Plata seaside. Agriculture contributes nearly 12% to the GDP and is the largest exporting sector. Agricultural and animal food processing accounts for half of the manufacturing activity and nearly 30% of the GDP. Fray Bentos and Paysandú are well known companies for their meat-freezing and canning plants. Other manufacturing activities include beverages (especially wines), textiles, construction material, chemicals, and petroleum and coal. Services add up to 60% of the GDP, thanks mainly to financial services. The tourism sector is also doing well.

Breakdown of economic activity by sector	Agriculture	Industry	Services
Employment by sector (in % of total employment)	4.6	21.9	73.5
Value added (in % of GDP)	10.1	32.0	57.9
Value added (annual % change)	2.5	7.9	10.1

- last available data.

Monetary indicators	2004	2005	2006	2007	2008
Uruguayan Peso (UYU) - Average annual exchange rate for 1 USD	28.70	24.48	24.07	23.47	20.95

Source: World Bank - World Development Indicators

Indicator of economic freedom

Score:: 69.1/100
Position:: moderately free
World Rank:: 38 out of 179
Regional Rank:: 5 out of 29

Distribution of Economic freedom in the world
Source: 2008 Index of Economic freedom, Heritage Foundation

Country risk

See the country risk analysis provided by Ducroire.

Foreign trade in figures

Uruguay is a member of Mercosur (common market between Uruguay, Paraguay, Argentina, and Brazil). The share of foreign trade in country’s GDP is around 50%. The country's top three export partners are: the USA, Brazil and Argentina, but also European Union. The commodities mainly exported are meat, dairy products, raw hides & skins, cereals, and wool. Its top three import partners are: Brazil, Argentina and Russia. It mainly imports mineral fuels & oils, machinery, electric & electronic equipment, vehicles, and plastics. Foreign investments are completely free in Uruguay and are not submitted to any declaration.

Foreign trade indicators	2003	2004	2005	2006	2007
Imports of goods (millions USD)	2,098	2,992	3,753	4,867	5,554
Exports of goods (millions USD)	2,281	3,145	3,774	4,407	5,063
Imports of services (millions USD)	636	786	939	987	1,249
Exports of services (millions USD)	771	1,112	1,311	1,392	1,762
Imports of goods and services (annual % change)	5.8	26.8	10.1	16.0	12.5
Exports of goods and services (annual % change)	4.2	30.4	16.3	7.6	10.2
Imports of goods and services (in % of GDP)	24.6	28.7	28.5	30.3	29.9
Exports of goods and services (in % of GDP)	26.1	31.8	31.1	29.9	29.2
Trade Balance (millions USD)	183	153	21	-460	-491
Trade Balance (including service) (millions USD)	318	478	393	-54	22
Foreign trade (in % of GDP)	50.6	60.5	59.5	60.2	59.1

Source: World Bank

Main partner countries

Main customers (% of exports)	2008
Brazil	16.6%
Argentina	8.5%
Russia	5.6%
Spain	4.0%
Venezuela	4.0%
United States	3.7%
Germany	3.6%
Mexico	3.0%
United Kingdom	2.9%
China	2.9%
Netherlands	2.7%
Italy	2.4%
Chile	2.3%
Neth. Antilles	1.9%
Paraguay	1.8%
Iran	1.7%
Israel	1.4%
Switzerland	1.4%
Peru	1.3%
Cuba	1.1%
See more countries	61.3%

Main suppliers (% of imports)	2008
Argentina	25.2%
Brazil	18.1%
China	10.2%
Russia	9.6%
Venezuela	6.3%
United States	6.0%
Angola	2.8%
Canada	2.2%
Germany	1.6%
Mexico	1.3%
Italy	1.3%
France	1.1%
Chile	1.1%
South Korea	1.1%
Spain	1.1%
Japan	1.0%
India	0.8%
United Kingdom	0.6%
Paraguay	0.6%
Sweden	0.5%
See more countries	30.6%

Source: Comtrade

Main products

Main exports (% of exports)	2008
Meat and edible meat offalMeat and edible meat offal	22.3%
CerealsCereals	9.8%
Dairy produce; birds' eggs; natural honey; edible...Dairy produce; birds' eggs; natural honey; edible products of animal origin, not elsewhere specified or included	7.7%
Wood and articles of wood; wood charcoalWood and articles of wood; wood charcoal	7.1%
Oil seeds and oleaginous fruits; miscellaneous...Oil seeds and oleaginous fruits; miscellaneous grains, seeds and fruit; industrial or medicinal plants; straw and fodder	6.0%
Raw hides and skins (other than furskins) and...Raw hides and skins (other than furskins) and leather	4.3%
Plastics and articles thereofPlastics and articles thereof	3.8%
Wool, fine or coarse animal hair; horsehair yarn...Wool, fine or coarse animal hair; horsehair yarn and woven fabric	3.5%
Fish and crustaceans, molluscs and other aquatic...Fish and crustaceans, molluscs and other aquatic invertebrates	3.2%
Mineral fuels, mineral oils and products of their...Mineral fuels, mineral oils and products of their distillation; bituminous substances; mineral waxes	3.2%
Products of the milling industry; malt; starches;...Products of the milling industry; malt; starches; inulin; wheat gluten	3.2%
Vehicles other than railway or tramway...Vehicles other than railway or tramway rolling-stock, and parts and accessories thereof	2.6%
Pharmaceutical productsPharmaceutical products	1.6%
Edible fruit and nuts; peel of citrus fruits or...Edible fruit and nuts; peel of citrus fruits or melons	1.5%
Animal or vegetable fats and oils and their...Animal or vegetable fats and oils and their cleavage products; prepared edible fats; animal or vegetable waxes	1.4%
Rubber and articles thereofRubber and articles thereof	1.3%
Natural or cultured pearls, precious or...Natural or cultured pearls, precious or semi-precious stones, precious metals, metals clad with precious metal, and articles thereof; imitation jewellery; coin	1.2%
Live animalsLive animals	1.2%
Soap, organic surface-active agents, washing...Soap, organic surface-active agents, washing preparations, lubricating preparations, artificial waxes, prepared waxes, polishing or scouring preparations, candles and similar articles, modelling pastes, 'dental waxes' and dental preparations with a basis of plaster	1.1%
Products of animal origin, not elsewhere specified...Products of animal origin, not elsewhere specified or included	1.1%
Paper and paperboard; articles of paper pulp, of...Paper and paperboard; articles of paper pulp, of paper or of paperboard	1.1%
Articles of iron or steelArticles of iron or steel	0.9%
Preparations of meat, of fish or of crustaceans,...Preparations of meat, of fish or of crustaceans, molluscs or other aquatic invertebrates	0.7%
Furniture; bedding, mattresses, mattress supports,...Furniture; bedding, mattresses, mattress supports, cushions and similar stuffed furnishings; lamps and lighting fittings, not elsewhere specified or included; illuminated signs, illuminated name-plates and the like; prefabricated buildings	0.7%
Inorganic chemicals; organic or inorganic...Inorganic chemicals; organic or inorganic compounds of precious metals, of rare-earth metals, of radioactive elements or of isotopes	0.7%
Miscellaneous chemical productsMiscellaneous chemical products	0.7%
Electrical machinery and equipment and parts...Electrical machinery and equipment and parts thereof; sound recorders and reproducers, television image and sound recorders and reproducers, and parts and accessories of such articles	0.6%
Articles of apparel and clothing accessories, not...Articles of apparel and clothing accessories, not knitted or crocheted	0.5%
Residues and waste from the food industries;...Residues and waste from the food industries; prepared animal fodder	0.5%
Furskins and artificial fur; manufactures thereofFurskins and artificial fur; manufactures thereof	0.5%
Tanning or dyeing extracts; tannins and their...Tanning or dyeing extracts; tannins and their derivatives; dyes, pigments and other colouring matter; paints and varnishes; putty and other mastics; inks	0.4%
Tobacco and manufactured tobacco substitutesTobacco and manufactured tobacco substitutes	0.4%
FertilizersFertilizers	0.4%
Organic chemicalsOrganic chemicals	0.4%
Articles of apparel and clothing accessories,...Articles of apparel and clothing accessories, knitted or crocheted	0.3%
Nuclear reactors, boilers, machinery and...Nuclear reactors, boilers, machinery and mechanical appliances; parts thereof	0.3%
Salt; sulphur; earths and stone; plastering...Salt; sulphur; earths and stone; plastering materials, lime and cement	0.3%
Iron and steelIron and steel	0.3%
Printed books, newspapers, pictures and other...Printed books, newspapers, pictures and other products of the printing industry; manuscripts, typescripts and plans	0.3%
Other made-up textile articles; sets; worn...Other made-up textile articles; sets; worn clothing and worn textile articles; rags	0.2%
Beverages, spirits and vinegarBeverages, spirits and vinegar	0.2%
Preparations of cereals, flour, starch or milk;...Preparations of cereals, flour, starch or milk; pastrycooks' products	0.2%
Aluminium and articles thereofAluminium and articles thereof	0.2%
Miscellaneous edible preparationsMiscellaneous edible preparations	0.2%
Optical, photographic, cinematographic, measuring,...Optical, photographic, cinematographic, measuring, checking, precision, medical or surgical instruments and apparatus; parts and accessories thereof	0.2%
Glass and glasswareGlass and glassware	0.2%
Ships, boats and floating structuresShips, boats and floating structures	0.2%
Copper and articles thereofCopper and articles thereof	0.1%
Ceramic productsCeramic products	0.1%
Preparations of vegetables, fruit, nuts or other...Preparations of vegetables, fruit, nuts or other parts of plants	0.1%
Knitted or crocheted fabricsKnitted or crocheted fabrics	0.1%
Articles of stone, plaster, cement, asbestos, mica...Articles of stone, plaster, cement, asbestos, mica or similar materials	0.1%
See more products	47.1%

Main imports (% of imports)	2008
Mineral fuels, mineral oils and products of their...Mineral fuels, mineral oils and products of their distillation; bituminous substances; mineral waxes	29.5%
Nuclear reactors, boilers, machinery and...Nuclear reactors, boilers, machinery and mechanical appliances; parts thereof	9.9%
Vehicles other than railway or tramway...Vehicles other than railway or tramway rolling-stock, and parts and accessories thereof	8.0%
Electrical machinery and equipment and parts...Electrical machinery and equipment and parts thereof; sound recorders and reproducers, television image and sound recorders and reproducers, and parts and accessories of such articles	6.4%
Plastics and articles thereofPlastics and articles thereof	4.8%
FertilizersFertilizers	3.4%
Miscellaneous chemical productsMiscellaneous chemical products	3.1%
Organic chemicalsOrganic chemicals	2.1%
Iron and steelIron and steel	2.1%
Aircraft, spacecraft, and parts thereofAircraft, spacecraft, and parts thereof	1.9%
Rubber and articles thereofRubber and articles thereof	1.7%
Paper and paperboard; articles of paper pulp, of...Paper and paperboard; articles of paper pulp, of paper or of paperboard	1.5%
Pharmaceutical productsPharmaceutical products	1.5%
Articles of iron or steelArticles of iron or steel	1.3%
Residues and waste from the food industries;...Residues and waste from the food industries; prepared animal fodder	1.1%
Optical, photographic, cinematographic, measuring,...Optical, photographic, cinematographic, measuring, checking, precision, medical or surgical instruments and apparatus; parts and accessories thereof	1.0%
Furniture; bedding, mattresses, mattress supports,...Furniture; bedding, mattresses, mattress supports, cushions and similar stuffed furnishings; lamps and lighting fittings, not elsewhere specified or included; illuminated signs, illuminated name-plates and the like; prefabricated buildings	0.9%
CerealsCereals	0.9%
Raw hides and skins (other than furskins) and...Raw hides and skins (other than furskins) and leather	0.8%
Articles of apparel and clothing accessories,...Articles of apparel and clothing accessories, knitted or crocheted	0.7%
Animal or vegetable fats and oils and their...Animal or vegetable fats and oils and their cleavage products; prepared edible fats; animal or vegetable waxes	0.7%
Soap, organic surface-active agents, washing...Soap, organic surface-active agents, washing preparations, lubricating preparations, artificial waxes, prepared waxes, polishing or scouring preparations, candles and similar articles, modelling pastes, 'dental waxes' and dental preparations with a basis of plaster	0.7%
Footwear, gaiters and the like; parts of such...Footwear, gaiters and the like; parts of such articles	0.7%
Inorganic chemicals; organic or inorganic...Inorganic chemicals; organic or inorganic compounds of precious metals, of rare-earth metals, of radioactive elements or of isotopes	0.7%
Articles of apparel and clothing accessories, not...Articles of apparel and clothing accessories, not knitted or crocheted	0.7%
Essential oils and resinoids; perfumery, cosmetic...Essential oils and resinoids; perfumery, cosmetic or toilet preparations	0.6%
Miscellaneous edible preparationsMiscellaneous edible preparations	0.6%
Tanning or dyeing extracts; tannins and their...Tanning or dyeing extracts; tannins and their derivatives; dyes, pigments and other colouring matter; paints and varnishes; putty and other mastics; inks	0.6%
Coffee, tea, maté and spicesCoffee, tea, maté and spices	0.6%
Salt; sulphur; earths and stone; plastering...Salt; sulphur; earths and stone; plastering materials, lime and cement	0.6%
Preparations of vegetables, fruit, nuts or other...Preparations of vegetables, fruit, nuts or other parts of plants	0.5%
Sugars and sugar confectionerySugars and sugar confectionery	0.5%
Wood and articles of wood; wood charcoalWood and articles of wood; wood charcoal	0.5%
Wool, fine or coarse animal hair; horsehair yarn...Wool, fine or coarse animal hair; horsehair yarn and woven fabric	0.5%
Fish and crustaceans, molluscs and other aquatic...Fish and crustaceans, molluscs and other aquatic invertebrates	0.4%
Preparations of cereals, flour, starch or milk;...Preparations of cereals, flour, starch or milk; pastrycooks' products	0.4%
Glass and glasswareGlass and glassware	0.4%
Aluminium and articles thereofAluminium and articles thereof	0.4%
Meat and edible meat offalMeat and edible meat offal	0.4%
Oil seeds and oleaginous fruits; miscellaneous...Oil seeds and oleaginous fruits; miscellaneous grains, seeds and fruit; industrial or medicinal plants; straw and fodder	0.4%
Toys, games and sports requisites; parts and...Toys, games and sports requisites; parts and accessories thereof	0.4%
Beverages, spirits and vinegarBeverages, spirits and vinegar	0.3%
Ceramic productsCeramic products	0.3%
Other made-up textile articles; sets; worn...Other made-up textile articles; sets; worn clothing and worn textile articles; rags	0.3%
Tools, implements, cutlery, spoons and forks, of...Tools, implements, cutlery, spoons and forks, of base metal; parts thereof of base metal	0.3%
Man-made staple fibresMan-made staple fibres	0.3%
Articles of stone, plaster, cement, asbestos, mica...Articles of stone, plaster, cement, asbestos, mica or similar materials	0.3%
Man-made filamentsMan-made filaments	0.3%
Tobacco and manufactured tobacco substitutesTobacco and manufactured tobacco substitutes	0.3%
Edible fruit and nuts; peel of citrus fruits or...Edible fruit and nuts; peel of citrus fruits or melons	0.2%
Copper and articles thereofCopper and articles thereof	0.2%
Miscellaneous manufactured articlesMiscellaneous manufactured articles	0.2%
Cocoa and cocoa preparationsCocoa and cocoa preparations	0.2%
Miscellaneous articles of base metalMiscellaneous articles of base metal	0.2%
CottonCotton	0.2%
Knitted or crocheted fabricsKnitted or crocheted fabrics	0.2%
Preparations of meat, of fish or of crustaceans,...Preparations of meat, of fish or of crustaceans, molluscs or other aquatic invertebrates	0.2%
Articles of leather; saddlery and harness; travel...Articles of leather; saddlery and harness; travel goods, handbags and similar containers; articles of animal gut (other than silkworm gut)	0.2%
Edible vegetables and certain roots and tubersEdible vegetables and certain roots and tubers	0.2%
Wadding, felt and nonwovens; special yarns; twine,...Wadding, felt and nonwovens; special yarns; twine, cordage, ropes and cables and articles thereof	0.1%
Albuminoidal substances; modified starches; glues;...Albuminoidal substances; modified starches; glues; enzymes	0.1%
Products of the milling industry; malt; starches;...Products of the milling industry; malt; starches; inulin; wheat gluten	0.1%
Pulp of wood or of other fibrous cellulosic...Pulp of wood or of other fibrous cellulosic material; recovered (waste and scrap) paper or paperboard	0.1%
Photographic or cinematographic goodsPhotographic or cinematographic goods	0.1%
Dairy produce; birds' eggs; natural honey; edible...Dairy produce; birds' eggs; natural honey; edible products of animal origin, not elsewhere specified or included	0.1%
See more products	41.5%

Source: Comtrade

See more products: More imports (Intracen Data)
More exports (Intracen Data)

Sources of general economic information

Ministries: Ministry of Economy and Finances (in Spanish)
General Tax Office
Central system of financial information
Statistical Office: National Institute of Statistics (in Spanish)
Central Bank: Central Bank of Uruguay
Stock Exchange: Uruguay Stock Exchange (in Spanish)
Montevideo Stock Exchange
Search Engines: Uruguay Total
LoGratis
Uruwow
Red Academy of Uruguay
Economic portals: Brecha

Political outline

Main political parties: Uruguay has a multi-party system, with three dominant political parties. It has been extreme difficulty for any other political party to achieve electoral success. However, Uruguays first coalition government has come to power in 2005. The three dominant parties are:
- Colorado Party - a liberal and social-democratic party, the most elected party in Uruguayan history;
- National Party - a liberal conservative party also called White Party;
- Independent Party - a social democratic and Christian socialist party, advocates Third Way - an alternative to the traditional left- and right-wing politics.
Current political leaders: President: Tabare VAZQUEZ Rosas (since March 2005) – EPFA (Broad Front-Progressive Encounter-New Majority) which is a coalition comprising of about a dozen small left-wing political parties.
Next election dates: Presidential: October 2009
Chamber of Representatives: October 2009

Indicator of freedom of the press

World Rank:: 43/173
Evolution:: 5 places down compared to 2007

Source: Worldwide Press Freedom Index 2007, Reporters Without Borders

Indicator of political freedom

Ranking:: Free
Political freedom:: 1/7
Civil liberties:: 1/7

Map of freedom 2007
Source: Freedom House

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