Uruguay Economy 2008

Economy - overview:
Uruguay's well-to-do 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 booming exports. The economy has grown strongly since 2004 as a result of high commodity prices for Uruguayan exports, a competitive peso, growth in the region, and low international interest rates.

GDP (purchasing power parity):
$37.05 billion (2007 est.)

GDP (official exchange rate):
$15.69 billion (2007 est.)

GDP - real growth rate:
5.7% (2007 est.)

GDP - per capita (PPP):
$10,700 (2007 est.)

GDP - composition by sector:
agriculture: 9.2%
industry: 33%
services: 57.8% (2007 est.)

Labor force:
1.278 million (2007 est.)

Labor force - by occupation:
agriculture: 14%
industry: 16%
services: 70% (2003)

Unemployment rate:
10.3% (2007 est.)

Population below poverty line:
27.37% of households (2006)

Household income or consumption by percentage share:
lowest 10%: 1.9%
highest 10%: 34% (2003)

Distribution of family income - Gini index:
45.2 (2006)

Inflation rate (consumer prices):
8.3% (2007 est.)

Investment (gross fixed):
16% of GDP (2007 est.)

Budget:
revenues: $6.612 billion
expenditures: $6.749 billion (2007 est.)

Public debt:
60.3% of GDP (2007 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:
8% (2007 est.)

Electricity - production:
7.558 billion kWh (2005)

Electricity - consumption:
6.509 billion kWh (2005)

Electricity - exports:
841 million kWh (2005)

Electricity - imports:
1.585 billion kWh (2005)

Oil - production:
935.7 bbl/day (2005 est.)

Oil - consumption:
39,000 bbl/day (2005 est.)

Oil - exports:
9,144 bbl/day (2004)

Oil - imports:
48,350 bbl/day (2004)

Oil - proved reserves:
0 bbl (1 January 2006 est.)

natural gas - production:
0 cu m (2005 est.)

natural gas - consumption:
86.32 million cu m (2005 est.)

natural gas - exports:
0 cu m (2005 est.)

natural gas - imports:
86.32 million cu m (2005)

natural gas - proved reserves:
0 cu m (1 January 2006 est.)

Current account balance:
-$100 million (2007 est.)

Exports:
$5.139 billion f.o.b. (2007 est.)

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:
$5.378 billion f.o.b. (2007 est.)

Imports - partners:
Argentina 20.4%, Brazil 17.1%, US 8.2%, Paraguay 7.1%, China 6.9%, Venezuela 4.8%, Nigeria 4.4% (2006)

Economic aid - recipient:
$14.62 million (2005)

Reserves of foreign exchange and gold:
$3.965 billion (31 December 2007 est.)

Debt - external:
$10.8 billion (30 June 2007)

Stock of direct foreign investment - at home:
$NA

Stock of direct foreign investment - abroad:
$NA

Market value of publicly traded shares:
$354 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)