Uruguay Economy - 2005

Economy - overview:
Uruguay's well-to-do economy is characterized by an export-oriented agricultural sector, a well-educated workforce, 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 massive withdrawals by Argentina of dollars deposited in Uruguayan banks led to a plunge in the Uruguyan 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 serious banking crisis. Unemployment rose to nearly 20% in 2002, inflation surged, and the burden of external debt doubled. Cooperation with the IMF limited the damage. The debt swap with private creditors carried out in 2003, which extended the maturity dates on nearly half of Uruguay's $11.3 billion in public debt, substantially alleviated the country's amortization burden in the coming years and restored public confidence. The economy grew about 10% in 2004 as a result of high commodity prices for Uruguayan exports, the weakness of the dollar against the euro, growth in the region, low international interest rates, and greater export competitiveness.

GDP:
purchasing power parity - $49.27 billion (2004 est.)

GDP - real growth rate:
10.2% (2004 est.)

GDP - per capita:
purchasing power parity - $14,500 (2004 est.)

GDP - composition by sector:
agriculture: 7.9%
industry: 27.4%
services: 64.8% (2004 est.)

Labor force:
1.56 million (2004 est.)

Labor force - by occupation:
agriculture 14%, industry 16%, services 70%

Unemployment rate:
13% (2004 est.)

Population below poverty line:
21% of households (2003)

Household income or consumption by percentage share:
lowest 10%: 3.7%
highest 10%: 25.8% (1997)

Distribution of family income - Gini index:
44.8 (1999)

Inflation rate (consumer prices):
7.6% (2004 est.)

Investment (gross fixed):
9.6% of GDP (2004 est.)

Budget:
revenues: $3.332 billion
expenditures: $3.787 billion, including capital expenditures of $193 million (2004 est.)

Agriculture - products:
rice, wheat, corn, barley; livestock; fish

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

Industrial production growth rate:
22% (2004 est.)

Electricity - production:
8.536 billion kWh (2003)

Electricity - consumption:
5.878 billion kWh (2003)

Electricity - exports:
954 million kWh (2003)

Electricity - imports:
434.2 million kWh (2003)

Oil - production:
0 bbl/day (2001 est.)

Oil - consumption:
41,500 bbl/day (2001 est.)

Oil - exports:
NA

Oil - imports:
NA

Natural gas - production:
0 cu m (2003 est.)

Natural gas - consumption:
64.5 million cu m (2003 est.)

Natural gas - exports:
0 cu m (2003 est.)

Natural gas - imports:
65 million cu m (2003 est.)

Current account balance:
$181.8 million (2004 est.)

Exports:
$2.2 billion f.o.b. (2003 est.)

Exports - commodities:
meat, rice, leather products, wool, fish, dairy products

Exports - partners:
Brazil 19.4%, US 18%, Germany 6.6%, Argentina 6.4% (2004)

Imports:
$2.071 billion f.o.b. (2003)

Imports - commodities:
machinery, chemicals, road vehicles, crude petroleum

Imports - partners:
Argentina 21.3%, Brazil 17.1%, US 12.3%, China 6.9%, Russia 5.1% (2004)

Reserves of foreign exchange and gold:
$2.362 billion (2004 est.)

Debt - external:
$12.8 billion (March 2004)

Economic aid - recipient:
NA

Currency (code):
Uruguayan peso (UYU)

Exchange rates:
Uruguayan pesos per US dollar - 28.704 (2004), 28.209 (2003), 21.257 (2002), 13.319 (2001), 12.1 (2000)