Economy of Uruguay

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Economy of Uruguay
WTC Free zone, WTC IV, WTC I, II & III, Montevideo Shopping, torre náutica, Torres del Puero.jpg
Skyline of Montevideo
Currency Uruguayan peso ($, UYU)
Calendar year
Statistics
GDP Increase$53.55 billion (PPP, 2012 est.)
GDP growth
Increase3.8% (2012 est.)[1]
GDP per capita
Increase$15,800 (PPP, 2012 est.)
GDP by sector
agriculture: 9.1%; industry: 21.5%; services: 69.3% (2012 est.)
Steady8.1% (CPI, 2012 est.)
Population below poverty line
18.6% (2010)
45.3 (2010)
Labour force
1.691 million (2012 est.)
Labour force by occupation
agriculture: 13%; industry: 14%; services: 73% (2010 est.)
Unemployment Increase6.1% (2012 est.)
Main industries
food processing, electrical machinery, transportation equipment, petroleum products, textiles, chemicals, beverages
90th[2]
External
Exports Increase$9.812 billion (2012 est.)
Export goods
beef, soybeans, cellulose, rice, wheat, wood, dairy products, wool
Main export partners
 Brazil 18.5%
 China 17.9%
 Argentina 6.8%
 Germany 4.3% (2012 est.)[3]
Imports Increase$10.97 billion (2012 est.)
Import goods
refined oil, crude oil, passenger and other transportation vehicles, vehicle parts, cellular phones
Main import partners
 China 16.1%
 Argentina 15.8%
 Brazil 14.6%
 United States 8.9%
 Paraguay 7.6% (2012 est.)[4]
FDI stock
Increase$15.2 billion (31 December 2010 est.)
Increase$15.9 billion (31 December 2012 est.)
Public finances
57.2% of GDP (2012 est.)Note: data cover general government debt, and include debt instruments issued (or owned) by government entities other than the treasury; the data include treasury debt held by foreign entities; the data include debt issued by subnational entities, as well as intra-governmental debt; intra-governmental debt consists of treasury borrowings from surpluses in the social funds, such as for retirement, medical care, and unemployment; debt instruments for the social funds are not sold at public auctions.
Revenues $14.28 billion (2012 est.)
Expenses $15.07 billion (2012 est.)
Foreign reserves
US$7.830 billion (March 2011)[7]
Main data source: CIA World Fact Book
All values, unless otherwise stated, are in US dollars.

The economy of Uruguay is characterized by an export-oriented agricultural sector and a well-educated work force, along with 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. In 2001–02, Argentine citizens made massive withdrawals of dollars deposited in Uruguayan banks after bank deposits in Argentina were frozen, which led to a plunge in the Uruguayan peso, a banking crisis, and a sharp economic contraction. Real GDP fell in four years by nearly 20%, with 2002 the worst year. The unemployment rate rose, inflation surged, and the burden of external debt doubled. Financial assistance from the IMF helped stem the damage. Uruguay restructured its external debt in 2003 without asking creditors to accept a reduction on the principal. Economic growth for Uruguay resumed, and averaged 8% annually during the period 2004-08. The 2008-09 global financial crisis put a brake on Uruguay's vigorous growth, which decelerated to 2.9% in 2009. Nevertheless, the country managed to avoid a recession and keep positive growth rates, mainly through higher public expenditure and investment, and GDP growth exceeded 7% in 2010.

Currency[edit]

Uruguay has a partially dollarized economy. As of August 2008 almost 60% of bank loans use United States dollars,[8] but most transactions use the Uruguayan peso.[9]

Specialties of Uruguay[edit]

  • Cattle were introduced to Uruguay before its independence by Hernando Arias de Saavedra, the Spanish Governor of Buenos Aires in 1603. Beef exports in 2006 amounted to around 37% of Uruguayan exports.[10]
  • Wool is a traditional product exported mainly to America, followed by the UK and India.[11]
  • Milk and dairy products. Conaprole, National Cooperative of Milk Producers[12] is the main exporter of dairy products in Latin America (in 2006). The area of the country dedicated to the dairy food is located mainly in the south west.
  • Rice. Fine varieties are produced in the lowlands in the east of the country close to Merin lake on the Uruguay-Brazil border. The national company Saman claims to be the main exporter in Latin America.[13] Countries it exports to include Brazil, Iran, Peru, South Africa, Chile, Senegal, Argentina, Paraguay, Bolivia, Ecuador, USA, Canada and China.
  • Tourism: Several seaside resorts, like Punta del Este or Punta del Diablo in the south-eastern departments of Maldonado and Rocha, regarded as a jet set resort in South America, are main attractions of Uruguay. International cruises call at Montevideo from October to March every year. Also, Uruguay hosts many year-round international conferences. (The original GATT Uruguay Round concerning trade was, as its name suggests, hosted in Uruguay). Montevideo is home to the headquarters (secretariat) of [Mercosur], the Common Market of the South, whose full members are Uruguay, Argentina, Brazil, Paraguay and Venezuela, associate members Bolivia, Chile, Colombia, Ecuador and Peru.
  • Software and consulting. Uruguay's well-educated workforce and lower-than-international wages have put Uruguay on the IT map. A product named GeneXus,[14] originally created in Uruguay by a company called ArTech, is noteworthy. Other important developers and consultants include De Larrobla & Asociados,[15] Greycon and Quanam.[16] Tata Consultancy Services has its headquarters for the Spanish speaking world in Uruguay. Many of these companies have established in Zonamerica Business & Technology Park

"With a population of only three million, Uruguay has rapidly become Latin America's outsourcing hub. In partnership with one of India's largest technology consulting firms, engineers in Montevideo work while their counterparts in Mumbai sleep." - The New York Times, Sep 22, 2006

  • Banking Services. Banking has traditionally been one of the strongest service export sectors in the country. Uruguay was once dubbed "the Switzerland of America", mainly for its banking sector and stability. The largest bank in Uruguay is Banco República, or BROU, which is state-owned; another important state bank is the BHU. Almost 20 private banks, most of them branches of international banks, operate in the country (Banco Santander, ABN AMRO, Citibank, among others). There are also a myriad of brokers and financial-services bureaus, among them Ficus Capital, Galfin Sociedad de Bolsa, Europa Sociedad de Bolsa, Darío Cukier, GBU, Hordeñana & Asociados Sociedad de Bolsa, etc. Uruguay has fully recovered from the financial crisis that caused a run on its banks.
  • Public Sector: The state in Uruguay has an important role in the economy, Uruguay resisted the trend of privatization in Utilities and state owned enterprises in the region. Several Referendums supported the state being in control of the most important utilities and energy companies. Some of the companies have a full monopoly warranted by law (like landline telephony, water), others compete freely with private operators (Insurance, mobile telephony, Banks). Most of them are dominant in the local market. There is strong debate in the Uruguayan society about their role, and future. Some of them made a contribution to the Uruguay state treasury.
    • The most important state owned companies are:Republica AFAP (Pension Fund), AFE (Railways), ANCAP (Energy), ANCO (Mail), Administracion Nacional de Puertos (Ports), ANTEL (Telecommunications: Telephony, Mobiles (ANCEL and Data ANTELDATA)), BHU (Mortgage Bank), BROU (Bank), BSE (Insurance), OSE (Water & Sewage), UTE (Electricity). These companies operate under public law, using a legal entity defined in the Uruguayan Constitution called 'Ente Autonomo' (Meaning Autonomic Entity). The government also owns parts of other companies operating under private law like the National Airline Carrier PLUNA and others owned totally or partially by the CND National Development Corporation.

Raw Data[edit]

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Topics

Communications
Culture
Demographics
Economy
Education
Foreign relations
Geography
Government
History
Military
Politics
Religion
Tourism
Transport


Uruguay
  • Industrial production growth rate: 12.6% (2006 est.)
  • Electricity - production: 9,474 GWh (1998)
    • fossil fuel: 3.91%
    • hydro: 95.62%
    • nuclear: 0%
    • other: 0.47% (1998)
  • Electricity - consumption: 6,526 GWh (1998)
  • Electricity - exports: 2,363 GWh (1998)
  • Electricity - imports: 78 GWh (1998)
  • Agriculture - products: wheat, rice, barley, maize, sorghum; livestock; fish
  • Exchange rates: Uruguayan pesos per US dollar - 24.048 (2006), 24.479 (2005), 28.704 (2004), 28.209 (2003), 21.257 (2002)

See also[edit]

External Links[edit]

References[edit]

  1. ^ [1]
  2. ^ "Doing Business in Uruguay 2012". World Bank. Retrieved 2011-11-21. 
  3. ^ "Export Partners of Uruguay". CIA World Factbook. 2012. Retrieved 2013-07-25. 
  4. ^ "Import Partners of Uruguay". CIA World Factbook. 2012. Retrieved 2013-07-25. 
  5. ^ "Sovereigns rating list". Standard & Poor's. Retrieved 26 May 2011. 
  6. ^ a b c Rogers, Simon; Sedghi, Ami (15 April 2011). "How Fitch, Moody's and S&P rate each country's credit rating". The Guardian (London). Retrieved 28 May 2011. 
  7. ^ "International Reserves and Foreign Currency Liquidity - URUGUAY". International Monetary Fund. 6 May 2011. Retrieved 31 May 2011. 
  8. ^ Piñón, Marco; Gelos, Gaston (2008-08-28). "Uruguay's Monetary Policy Effective Despite Dollarization". IMF Survey Magazine. Retrieved March 4, 2012. 
  9. ^ Piñón, Marco; Gelos, Gaston; López-Mejía, Alejandro (editors) (2008). Macroeconomic Implications of Financial Dollarization: The Case of Uruguay. International Monetary Fund. p. 2. ISBN 978-1-58906-727-1. 
  10. ^ http://www.aca.com.uy/datos_estadisticos/exportaciones_2006.htm
  11. ^ Secretariado Uruguayo de la Lana
  12. ^ Conaprole
  13. ^ SAMAN. Principal exportador de arroz de América Latina. The leading rice exporter in Latin America
  14. ^ GeneXus.com
  15. ^ Core Bancario - Core Banking Solution - Bantotal
  16. ^ Welcome to Quanam: A knowledge company::: ORACLE CERTIFIED ADVANTAGE PARTNER