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flag Uruguay Uruguay: Economic and Political Outline

Economic Indicators | Foreign Trade in Figures | Sources of General Economic Information | Political Outline

Economic Indicators

After having experienced a deep recession in 1999-2002, Uruguay revived with a growth higher than 6% in the years 2004-2008; after that, the country was affected by the global economic crisis and a strong drought.  Contrary to many other countries, Uruguay has kept a positive growth in 2009 (2.9%), supported by the increase of public expenditures and investments.  Thanks to the rebound of exports and the dynamism of domestic demand, the revival was quick and vigorous in 2010, the growth increased to 8.5% of the GDP.  A more or less moderate growth is expected for 2011-2012. 

In the context of the strong revival, the priority is given to keep the economy stable.  Monetary measures to prevent an increase in inflation have been taken.  The budget 2010-2014 has placed emphasis on the reduction of the public debt, the increase of expenditures in infrastructures and education, the creation of funds that will permit to face the fluctuations in the cost of electricity production due to bad weather.  In the meantime, in order to encourage growth, the government is seeking to develop investment projects in the energy and transport sectors promoting public/private partnerships. 

Uruguay has on one of the highest GDP per capita in South America, the unemployment rate is decreasing, being at 7% of the active population.  One fourth of the population still lives beyond the poverty line.

 
Main Indicators 2009201020112012 (e)2013 (e)
GDP (billions USD) 31.3240.2749.42e53.1256.07
GDP (Constant Prices, Annual % Change) 2.68.56.04.24.0
GDP per Capita (USD) 9,36411,998e14,672e15,71416,527
General Government Gross Debt (in % of GDP) 61.057.1e49.3e46.945.3
Inflation Rate (%) 7.16.77.7e6.56.0
Unemployment Rate (% of the Labor Force) 7.36.76.66.66.5
Current Account (billions USD) 0.18-0.16-0.78-1.61-1.41
Current Account (in % of GDP) 0.6-0.4-1.6e-2.5-

Source: IMF - World Economic Outlook Database ; World Bank , Last Available Data

Note: (e) Estimated Data

Main Sectors of Industry

Agriculture contributes10% to the GDP and it is the largest export sector. Uruguay has rich agricultural land.  Almost 90% of the land is devoted to livestock breeding (cattle, sheep, horses and pigs). Rice is the main crop, followed by wheat, corn and sugar cane. There is also a gardening market and fruit farming as well as a wine-growing industry all along the coast of the Rio de la Plata.

Agriculture and animal food processing account for half of the industrial activity, which represents about one fourth of the GDP. Fray Bentos and Paysandu are companies well-known for their frozen meat factories and canned foods. Other manufacturing activities include beverages (especially wines), textiles, construction materials, chemicals, oil and coal.

Services employ more than two thirds of the population and contribute almost 60% to the GDP, mainly due to financial services and tourism.

 
Breakdown of Economic Activity By Sector Agriculture Industry Services
Employment By Sector (in % of Total Employment) 11.0 21.7 67.2
Value Added (in % of GDP) 11.6 25.1 63.3
Value Added (Annual % Change) 5.9 8.1 7.1

Source: World Bank - Last Available Data.

 
 
Monetary Indicators 20062007200820092010
Uruguayan Peso (UYU) - Average Annual Exchange Rate For 1 USD 24.0723.4720.9522.5720.06

Source: World Bank - Last Available Data.

 
 
Learn more about Market Analysis about Uruguay on Globaltrade.net, the Directory for International Trade Services.
 

Indicator of Economic Freedom

Score:
70.0/100
Position:
Mostly free
World Rank:
32/179
Regional Rank:
2/26

Distribution of Economic freedom in the world
Source: 2011 Index of Economic freedom, Heritage Foundation

 

Country Risk

See the Country Risk Analysis Provided By Ducroire.

 

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Foreign Trade in Figures

Uruguay has an open economy and foreign trade represents about 55% of the GDP. Uruguay is a member of Mercosur (common market between Uruguay, Paraguay, Argentina, and Brazil).  Uruguay's main clients are: Brazil, China and the European Union. The commodities exported are mainly meats, dairy products, leather and raw skins, cereals and wool. The country's main suppliers are Argentina, Brazil, China and the United States. The country mainly imports mineral fuels and oil, machinery, electric & electronic equipment, vehicles and plastics.  Structurally in deficit, Uruguay's trade balance has seen an improvement due to the growth in exports.

 
Foreign Trade Indicators 20062007200820092010
Imports of Goods (million USD) 4,8065,6289,0696,9078,622
Exports of Goods (million USD) 3,9894,5185,9425,4056,733
Imports of Services (million USD) 9371,0791,4011,0721,006
Exports of Services (million USD) 1,3611,8042,2402,1322,291
Imports of Goods and Services (Annual % Change) 15.35.721.0-8.618.8
Exports of Goods and Services (Annual % Change) 3.27.410.12.514.4
Imports of Goods and Services (in % of GDP) 31.429.633.525.724.4
Exports of Goods and Services (in % of GDP) 29.628.529.226.625.7
Trade Balance (million USD) -499-545-1,714-252-256
Trade Balance (Including Service) (million USD) -90158-892738811
Foreign Trade (in % of GDP) 61.058.162.752.350.2

Source: WTO - World Trade Organization ; World Bank , Last Available Data

 

Main Partner Countries

Main Customers
(% of Exports)
2009
Brazil 20.4%
Argentina 6.4%
China 4.3%
Russia 4.0%
Venezuela 3.5%
See More Countries 61.3%
Main Suppliers
(% of Imports)
2009
Argentina 23.6%
Brazil 21.1%
China 11.9%
United States 8.2%
Venezuela 7.6%
See More Countries 27.6%

Source: Comtrade, Last Available Data

 

Main Products

Main Exports
(% of Exports)
2009
Meat of bovine animals, frozenMeat of bovine animals, frozen 13.7%
RiceRice 8.6%
Soya beans, whether or not brokenSoya beans, whether or not broken 8.5%
Wheat and meslinWheat and meslin 4.8%
Meat of bovine animals, fresh or chilledMeat of bovine animals, fresh or chilled 4.0%
See More Products 60.5%
Main Imports
(% of Imports)
2009
Petroleum oils and oils obtained from bituminous...Petroleum oils and oils obtained from bituminous minerals, crude 11.8%
Petroleum oils and oils obtained from bituminous...Petroleum oils and oils obtained from bituminous minerals (excl. crude); preparations containing >= 70% by weight of petroleum oils or of oils obtained from bituminous minerals, these oils being the basic constituents of the preparations, n.e.s.; waste oils containing mainly petroleum or bituminous minerals 8.1%
Electrical energyElectrical energy 3.8%
Motor cars and other motor vehicles principally...Motor cars and other motor vehicles principally designed for the transport of persons, incl. station wagons and racing cars (excl. motor vehicles of heading 8702) 2.8%
Automatic data processing machines and units...Automatic data processing machines and units thereof; magnetic or optical readers, machines for transcribing data onto data media in coded form and machines for processing such data, n.e.s. 2.0%
See More Products 71.5%

Source: Comtrade, Last Available Data

 
See More Products
More imports (Intracen Data)
More exports (Intracen Data)
 

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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

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Political Outline

Main Political Parties
Uruguay has a multi-party system, with three dominant political parties. It has been extremly difficult for any other political party to achieve electoral success. However, Uruguay’s first coalition government has came 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
Chamber of Senators: October 2014
Chamber of Representatives: October 2014
Presidential: October 2014
 

Indicator of Freedom of the Press

World Rank:
37/178
Evolution:
8 places down compared to 2009

Source: Worldwide Press Freedom Index 2010, Reporters Without Borders

 

Indicator of Political Freedom

Ranking:
Free
Political Freedom:
1/7
Civil Liberties:
1/7

Map of freedom 2010
Source: Freedom House

 

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Last Updates: January 2012