Capital City: Montevideo
	It is %T:%M %A in Montevideo

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Economic trends

After going through its worst economic and financial crisis in recent history in early 2000 due to devaluation of the Brazilian real, outbreak of foot and mouth disease, and the Argentinean crises. The economy in Uruguay has started reviving after 2004 but cope nowadays with a declining growth rate : 7.0% in 2007, 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 branches 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. Agriculture contributes nearly 12% to the GDP and is the largest exporting sector. The manufacturing sector accounts for nearly 30% of the GDP. The processing of agricultural and animal products accounts for about half of the manufacturing activity. 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.

International trade

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. 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.