Uruguay Economy Profile 2008

Economy - overview

Uruguay's economy is characterized by an export-oriented agricultural sector, a well-educated work force, and high levels of social spending. After averaging growth of 5% annually during 1996-98, in 1999-2002 the economy suffered a major downturn, stemming largely from the spillover effects of the economic problems of its large neighbors, Argentina and Brazil. For instance, in 2001-02 Argentina made massive withdrawals of dollars deposited in Uruguayan banks, which led to a plunge in the Uruguayan peso and a massive rise in unemployment. Total GDP in these four years dropped by nearly 20%, with 2002 the worst year due to the banking crisis. The unemployment rate rose to nearly 20% in 2002, inflation surged, and the burden of external debt doubled. Cooperation with the IMF helped stem the damage. Uruguay in 2007 improved its debt profile by paying off $1.1 billion in IMF debt, and continues to follow the orthodox economic plan set by the Fund in 2005. The construction of a pulp mill in Fray Bentos, which represents the largest foreign direct investment in Uruguay's history at $1.2 billion, came online in November 2007 and is expected to add 1.6% to GDP and boost already rising exports. The economy has grown strongly since 2004 as a result of high commodity prices for Uruguayan exports, a strong peso, growth in the region, and low international interest rates.

GDP (purchasing power parity)

$37.05 billion (2007 est.)

GDP (official exchange rate)

$21.17 billion (2007 est.)

GDP - real growth rate

7.2% (2007 est.)

GDP - per capita (PPP)

$10,700 (2007 est.)

GDP - composition by sector

agriculture: 9.2%
industry: 33%
services: 57.8% (2007 est.)

Population below poverty line

27.4% of households (2006)

Household income or consumption by percentage share

lowest 10%: 1.9%
highest 10%: 34% (2003)

Inflation rate (consumer prices)

8.5% (2007)

Investment (gross fixed)

16% of GDP (2007 est.)

Labor force

1.5 million (2007 est.)

Labor force - by occupation

agriculture: 9%
industry: 15%
services: 76% (2007 est.)

Unemployment rate

9.2% (2007 est.)

Distribution of family income - Gini index

45.2 (2006)

Budget

revenues: $6.6 billion
expenditures: $6.3 billion (2007 est.)

Public debt

67% of GDP (2007)

Industries

food processing, electrical machinery, transportation equipment, petroleum products, textiles, chemicals, beverages

Industrial production growth rate

6% (2007 est.)

Electricity - production

9.2 billion kWh (2007)

Electricity - consumption

7.03 billion kWh (2007)

Electricity - exports

1 billion kWh (2007)

Electricity - imports

780 million kWh (2007)

Oil - production

27,830 bbl/day (2007 est.)

Oil - consumption

33,400 bbl/day (2007 est.)

Oil - imports

43,670 bbl/day (2007)

Oil - exports

4,410 bbl/day (2007)

Oil - proved reserves

NA

Natural gas - production

0 cu m (2007)

Natural gas - consumption

102.8 million cu m (2007 est.)

Natural gas - exports

0 cu m (2007 est.)

Natural gas - imports

116.9 million cu m (2007)

Natural gas - proved reserves

0 cu m (1 January 2006 est.)

Current Account Balance

-$400 million (2007 est.)

Agriculture - products

rice, wheat, soybeans, barley; livestock, beef; fish; forestry

Exports

$4.5 billion f.o.b. (2007)

Exports - commodities

meat, rice, leather products, wool, fish, dairy products

Exports - partners

Brazil 15.1%, US 12.1%, Argentina 6.8%, Mexico 6.4%, China 6%, Germany 5%, Russia 4.9% (2006)

Imports

$5.5 billion f.o.b. (2007 est.)

Imports - commodities

crude petroleum and petroleum products, machinery, chemicals, road vehicles, paper, plastics

Imports - partners

Argentina 20.4%, Brazil 17.1%, US 8.2%, Paraguay 7.2%, China 6.9%, Venezuela 4.8%, Nigeria 4.4% (2006)

Reserves of foreign exchange and gold

$4.1 billion (December 2007 est.)

Debt - external

$12 billion (30 September 2007)

Stock of direct foreign investment - at home

$4.19 billion (2007)

Stock of direct foreign investment - abroad

$156 million (2007)

Market value of publicly traded shares

$224 million (2007)

Economic aid - recipient

$14.62 million (2005)

Currency (code)

Uruguayan peso (UYU)

Exchange rates

Uruguayan pesos per US dollar - 23.947 (2007), 24.048 (2006), 24.479 (2005), 28.704 (2004), 28.209 (2003)

Fiscal year

calendar year