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Uruguay: Economic and Political Outline
Economic Indicators | Foreign Trade in Figures | Sources of General Economic Information | Political Outline
Apart from inflation, which was more than 5.4% in 2011, all the macroeconomic data are sound and the country maintains its image of political and economic stability.
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. In 2011 this tendency continued with a growth rate of 6%.
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, in 2011 to 6% of the active population. However, in the same year, one fourth of the population was still living beyond the poverty line.
| Main Indicators | 2009 | 2010 | 2011 | 2012 (e) | 2013 (e) |
| GDP (billions USD) | 31.32 | 40.27 | 49.42e | 53.12 | 56.07 |
| GDP (Constant Prices, Annual % Change) | 2.6 | 8.5 | 6.0 | 4.2 | 4.0 |
| GDP per Capita (USD) | 9,364 | 11,998e | 14,672e | 15,714 | 16,527 |
| General Government Gross Debt (in % of GDP) | 61.0 | 57.1e | 49.3e | 46.9 | 45.3 |
| Inflation Rate (%) | 7.1 | 6.7 | 7.7e | 6.5 | 6.0 |
| Unemployment Rate (% of the Labor Force) | 7.3 | 6.7 | 6.6 | 6.6 | 6.5 |
| 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
Agriculture (the largest export sector) and fishing contributes 30% to the GDP. 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. 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 over 50% 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) | 8.6 | 26.5 | 64.9 |
| Value Added (Annual % Change) | 0.8 | 9.6 | 7.9 |
Source: World Bank - Last Available Data.
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| Monetary Indicators | 2006 | 2007 | 2008 | 2009 | 2010 |
| Uruguayan Peso (UYU) - Average Annual Exchange Rate For 1 USD | 24.07 | 23.47 | 20.95 | 22.57 | 20.06 |
Source: World Bank - Last Available Data.
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Distribution of Economic freedom in the world
Source: 2011 Index of Economic freedom, Heritage Foundation
Note: The Economic freedom index measure ten components of economic freedom, grouped into four broad categories or pillars of economic freedom: Rule of Law (property rights, freedom from corruption); Limited Government (fiscal freedom, government spending); Regulatory Efficiency (business freedom, labor freedom, monetary freedom); and Open Markets (trade freedom, investment freedom, financial freedom). Each of the freedoms within these four broad categories is individually scored on a scale of 0 to 100. A country’s overall economic freedom score is a simple average of its scores on the 10 individual freedoms.
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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).
its economy is based on industry, trade and banking services (Montevideo), as well as agriculture, livestock farming (in the center of the country) and tourism (East). Meat and cereals represent 30% of all exports and paper industry 7%. Tourism provides an large inflow of foreign currency, corresponding to 6% of the GDP in 2011.
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 | 2007 | 2008 | 2009 | 2010 | 2011 |
| Imports of Goods (million USD) | 5,628 | 9,069 | 6,907 | 8,622 | 10,726 |
| Exports of Goods (million USD) | 4,518 | 5,942 | 5,405 | 6,733 | 7,983 |
| Imports of Services (million USD) | 1,079 | 1,401 | 1,072 | 1,365 | 1,727 |
| Exports of Services (million USD) | 1,804 | 2,240 | 2,132 | 2,458 | 3,292 |
| Imports of Goods and Services (Annual % Change) | 5.9 | 24.4 | -9.2 | 16.2 | - |
| Exports of Goods and Services (Annual % Change) | 4.8 | 8.5 | 3.8 | 8.5 | - |
| Imports of Goods and Services (in % of GDP) | 30.1 | 35.0 | 27.1 | 26.1 | - |
| Exports of Goods and Services (in % of GDP) | 29.1 | 30.2 | 27.7 | 26.9 | - |
| Trade Balance (million USD) | -545 | -1,714 | -252 | -256 | - |
| Trade Balance (Including Service) (million USD) | 158 | -892 | 738 | 811 | - |
| Foreign Trade (in % of GDP) | 59.2 | 65.2 | 54.8 | 53.0 | - |
Source: WTO - World Trade Organization ; World Bank , Last Available Data
| 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 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% |
Source: Comtrade, Last Available Data
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Source: Worldwide Press Freedom Index 2011, Reporters Without Borders
Note: The world rankings, published annually, measures the violations of press freedom worldwide. It reflects the degree of freedom enjoyed by journalists, the media and digital citizens of each country and the means used by states to respect and uphold this freedom. Finally, a note and a position is assigned to each country. To compile this index, Reporters Without Borders (RWB) prepared a questionnaire sent to partner organizations,150 RWB correspondents, journalists, researchers, jurists and activists of human rights, including the main criteria - 44 in total - to assess the situation of press freedom in a given country. It includes every kind of direct attacks against journalists and digital citizens (murders, imprisonment, assault, threats, etc.) or against the media (censorship, confiscation, searches and harassment etc.).
Map of freedom 2010
Source: Freedom House
Note: The Indicator of Political Freedom provides an annual evaluation of the state of freedom in a country as experienced by individuals. The survey measures freedom according to two broad categories: political rights and civil liberties. The ratings process is based on a checklist of 10 political rights questions (on Electoral Process, Political Pluralism and Participation, Functioning of Government) and 15 civil liberties questions (on Freedom of Expression, Belief, Associational and Organizational Rights, Rule of Law, Personal Autonomy and Individual Rights). Scores are awarded to each of these questions on a scale of 0 to 4, where a score of 0 represents the smallest degree and 4 the greatest degree of rights or liberties present. The total score awarded to the political rights and civil liberties checklist determines the political rights and civil liberties rating. Each rating of 1 through 7, with 1 representing the highest and 7 the lowest level of freedom, corresponds to a range of total scores.
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Last Updates: May 2012