Uruguay:

Country Economic Overview

An overview of the Uruguayan economy

Contents

An Overview of the Economy

Uruguay's economy is starting to grow following a crisis period that began after Brazil's devaluation in early 1999. Unemployment peaked at 19% in 2003, but fell to 12.2% in 2005. Uruguay's four years of recession came to an end in 2003, and 2004 showed a positive economic performance with 12.3% GDP growth. In 2005 GDP growth reached 6.6%. Government income and expenditure is under control and Uruguay has been able to comply with its commitments to the IMF which lent Uruguay around US$3 billion since July 2002 of which the country repaid its dept in November 2006. With an economy reliant on live stock and related exports from neighbouring countries Brazil and Argentina, there is the possibility of another crash in the future. Its economic stability then is somewhat volatile.

statistics  
GDP (PPP) (IMF) (US$Billions) 37.2
GDP (PPP) (CIA) (US$Billions) 37.2
GDP Growth (IMF) (%) 7%
GDP Growth (CIA) (%) 7%
GDP Per Capita (PPP) (IMF) (US$) 11,621
GDP Per Capita (PPP) (CIA) (US$) 11,600
GDP by Sector (%) Agriculture: 10.1%
Services: 57.9%
Industry: 15%
Inflation (%) 8.1%
Population Below the Poverty Line (%) 27.4%
Labour Force (Millions) 1.58
Labour Force by Occupation (%) Agriculture: 9%
Services: 76%
Industry: 15%
Unemployment (%) 9.2%
Main Industries Food processing, electrical machinery, transportation
equipment, petroleum products, textiles, chemicals,
beverages.

Source: CIA World Factbook, IMF

GDP

economic indicators 2003 2004 2005 2006 2007
GDP (US$Billions) 11.2 13.3 16.7 19.3 23.0
GDP Growth (%) 2.2% 11.8% 6.6% 7% 7%
GDP Per Capita (US$) 3,317 3,903 5,227 6,036 7,172
GDP Per Capita (PPP) (US$) 7,202 8,218 8,584 10,578 11,621
Inflation (%) 19.4% 9.2% 4.7% 6.4% 8.1%
Unemployment (%) 19.4% 16.0% 13.0% 12.2% 9.2%
Mobile Phone Users 350,000 652,000 652,000 600,000 -
Internet Users 400,000 400,000 400,000 680,000 756,000

Source: IMF, CIA World Factbook

Major Exports & Imports

The Uruguayan economy greatly depends on agriculture, which accounts for almost 10% of the country's GDP and is the biggest foreign exchange earner. Farming, finance and tourism industries are also very important for the growth of the economy, all of which are performing well. As the country relies heavily on trade to sustain good economic growth it is very exposed to possible economic breakdown.

Major Exports 2007

Meat, rice, leather products, wool, fish, dairy products.

Major Imports 2007

Machinery, chemicals, road vehicles, crude petroleum, paper, plastics.

Export partners 2007 % of total
Brazil 15%
US 12.1%
Argentina 6.8%
Mexico 6.4%
China 6%
Germany 5%
Russia 4.9%
import partners 2007 % of total
Argentina 20.4%
Brazil 17.1%
US 8.2%
Paraguay 7.2%
China 6.9%
Venezuela 4.8%
Nigeria 4.4%
Source: CIA World Factbook Top

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