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Uruguay

Uruguay Economy Stats

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Author: jaacosta47

Uruguay is aptly called The Netherlands of Latin America. It has a significantly liberal form of government with progressive social policies and stable economy. In 2013, Uruguay became prominent for rescinding an effort to punish abortion and making marijuana legal and affordable to all. During the same year, the International Monetary Fund disclosed a strong growth in terms of Gross Domestic Product of four percent. Economic analysts also forecasted a positive trend for the current year. The IMF predicts this growth to be at 3.5 percent which is the 12th successive year that the economy of Uruguay has not gone to recession.

The Central Bank of Montevideo was more optimistic and predicted that the country’s economy will go up by 4.1 percent in 2014. Inflation remains one of the greatest challenges to the Government’s economic officials. It is expected to remain over the three to seven percent target until the latter part of 2015 notwithstanding the fiscal tightening policies being implemented by Uruguay. Real GDP growth will be below 4 percent this year but should increase again to 4.5 percent by 2018.

During the last 10 years, the Uruguayan economy has become more diversified. The economy depends on beef exports, financial services and tourism. However, grain, dairy, pulp and transportation and logistics industries have emerged as new economic sectors. The dairy and pulp sectors benefitted most from strong foreign investments.

Uruguay is a small country of approximately 3.3 million people. It lies between South America’s two biggest economies but has become less dependent on trade with Argentina. Uruguay's main trading partners are the countries of Argentina and although it is making inroads in the international trading community. Business negotiations with other countries include the European Union and the United States.

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. 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.

Definitions

  • Budget > Revenues: Revenues calculated on an exchange rate basis, i.e., not in purchasing power parity (PPP) terms
  • Budget surplus > + or deficit > -: This entry records the difference between national government revenues and expenditures, expressed as a percent of GDP. A positive (+) number indicates that revenues exceeded expenditures (a budget surplus), while a negative (-) number indicates the reverse (a budget deficit). Normalizing the data, by dividing the budget balance by GDP, enables easy comparisons across countries and indicates whether a national government saves or borrows money. Countries with high budget deficits (relative to their GDPs) generally have more difficulty raising funds to finance expenditures, than those with lower deficits.
  • Debt > Government debt > Public debt, share of GDP: Public debt as % of GDP (CIA).

    No date was available from the Wikipedia article, so we used the date of retrieval.

  • Exports: This entry provides the total US dollar amount of merchandise exports on an f.o.b. (free on board) basis. These figures are calculated on an exchange rate basis, i.e., not in purchasing power parity (PPP) terms.
  • GDP: GDP at purchaser's prices is the sum of gross value added by all resident producers in the economy plus any product taxes and minus any subsidies not included in the value of the products. It is calculated without making deductions for depreciation of fabricated assets or for depletion and degradation of natural resources. Data are in current U.S. dollars. Dollar figures for GDP are converted from domestic currencies using single year official exchange rates. For a few countries where the official exchange rate does not reflect the rate effectively applied to actual foreign exchange transactions, an alternative conversion factor is used.
  • GDP > Composition, by sector of origin > Services: This entry is derived from Economy > GDP > Composition, by sector of origin, which shows where production takes place in an economy. The distribution gives the percentage contribution of agriculture, industry, and services to total GDP, and will total 100 percent of GDP if the data are complete. Agriculture includes farming, fishing, and forestry. Industry includes mining, manufacturing, energy production, and construction. Services cover government activities, communications, transportation, finance, and all other private economic activities that do not produce material goods.
  • GDP > Per capita: This entry gives the gross domestic product (GDP) or value of all final goods and services produced within a nation in a given year. A nation's GDP at purchasing power parity (PPP) exchange rates is the sum value of all goods and services produced in the country valued at prices prevailing in the United States. This is the measure most economists prefer when looking at per-capita welfare and when comparing living conditions or use of resources across countries. The measure is difficult to compute, as a US dollar value has to be assigned to all goods and services in the country regardless of whether these goods and services have a direct equivalent in the United States (for example, the value of an ox-cart or non-US military equipment); as a result, PPP estimates for some countries are based on a small and sometimes different set of goods and services. In addition, many countries do not formally participate in the World Bank's PPP project that calculates these measures, so the resulting GDP estimates for these countries may lack precision. For many developing countries, PPP-based GDP measures are multiples of the official exchange rate (OER) measure. The difference between the OER- and PPP-denominated GDP values for most of the weathly industrialized countries are generally much smaller. Per capita figures expressed per 1 population.
  • GDP > Per capita > PPP: This entry shows GDP on a purchasing power parity basis divided by population as of 1 July for the same year.
  • GDP > Purchasing power parity per capita: This entry gives the gross domestic product (GDP) or value of all final goods and services produced within a nation in a given year. A nation's GDP at purchasing power parity (PPP) exchange rates is the sum value of all goods and services produced in the country valued at prices prevailing in the United States. This is the measure most economists prefer when looking at per-capita welfare and when comparing living conditions or use of resources across countries. The measure is difficult to compute, as a US dollar value has to be assigned to all goods and services in the country regardless of whether these goods and services have a direct equivalent in the United States (for example, the value of an ox-cart or non-US military equipment); as a result, PPP estimates for some countries are based on a small and sometimes different set of goods and services. In addition, many countries do not formally participate in the World Bank's PPP project that calculates these measures, so the resulting GDP estimates for these countries may lack precision. For many developing countries, PPP-based GDP measures are multiples of the official exchange rate (OER) measure. The difference between the OER- and PPP-denominated GDP values for most of the weathly industrialized countries are generally much smaller. Figures expressed per capita for the same year.
  • GDP per capita: GDP at purchaser's prices is the sum of gross value added by all resident producers in the economy plus any product taxes and minus any subsidies not included in the value of the products. It is calculated without making deductions for depreciation of fabricated assets or for depletion and degradation of natural resources. Data are in current U.S. dollars. Dollar figures for GDP are converted from domestic currencies using single year official exchange rates. For a few countries where the official exchange rate does not reflect the rate effectively applied to actual foreign exchange transactions, an alternative conversion factor is used. Figures expressed per capita for the same year.
  • Gross National Income: GNI, Atlas method (current US$). GNI (formerly GNP) is the sum of value added by all resident producers plus any product taxes (less subsidies) not included in the valuation of output plus net receipts of primary income (compensation of employees and prop).
  • Inflation rate > Consumer prices: This entry furnishes the annual percent change in consumer prices compared with the previous year's consumer prices.
  • Population below poverty line: National estimates of the percentage of the population lying below the poverty line are based on surveys of sub-groups, with the results weighted by the number of people in each group. Definitions of poverty vary considerably among nations. For example, rich nations generally employ more generous standards of poverty than poor nations.
  • Public debt: This entry records the cumulatiive total of all government borrowings less repayments that are denominated in a country's home currency. Public debt should not be confused with external debt, which reflects the foreign currency liabilities of both the private and public sector and must be financed out of foreign exchange earnings.
  • Unemployment rate: This entry contains the percent of the labor force that is without jobs. Substantial underemployment might be noted.
STAT AMOUNT DATE RANK HISTORY
Budget > Revenues $14.25 billion 2013 75th out of 223
Budget surplus > + or deficit > - -2.8% of GDP 2012 94th out of 182
Debt > Government debt > Public debt, share of GDP 57.2 CIA 2014 49th out of 153
Exports $9.89 billion 2012 92nd out of 189
GDP $49.06 billion 2012 72nd out of 177
GDP > Composition, by sector of origin > Services 71.8% 2012 40th out of 189
GDP > Per capita $14,428.36 per capita 2010 25th out of 118
GDP > Per capita > PPP $15,900.00 2012 60th out of 188
GDP > Purchasing power parity per capita $14,362.47 2010 60th out of 181
GDP per capita $14,449.50 2012 42nd out of 177
Gross National Income $19.19 billion 2001 58th out of 158
Inflation rate > Consumer prices 8.1% 2012 38th out of 199
Population below poverty line 18.6% 2010 28th out of 48
Public debt 59.4% of GDP 2012 44th out of 149
Unemployment rate 6% 2012 73th out of 112

SOURCES: CIA World Factbooks 18 December 2003 to 28 March 2011; CIA World Factbooks 2010, 2011, 2012, 2013; Wikipedia: List of countries by public debt (List) (Public debt , The World Factbook , United States Central Intelligence Agency , accessed on March 21, 2013.); World Bank national accounts data, and OECD National Accounts data files.; CIA World Factbook 2010, 2011, 2012, 2013; CIA World Factbooks 18 December 2003 to 28 March 2011. Population figures from World Bank: (1) United Nations Population Division. World Population Prospects, (2) United Nations Statistical Division. Population and Vital Statistics Report (various years), (3) Census reports and other statistical publications from national statistical offices, (4) Eurostat: Demographic Statistics, (5) Secretariat of the Pacific Community: Statistics and Demography Programme, and (6) U.S. Census Bureau: International Database.; World Bank national accounts data, and OECD National Accounts data files. Population figures from World Bank: (1) United Nations Population Division. World Population Prospects, (2) United Nations Statistical Division. Population and Vital Statistics Report (various years), (3) Census reports and other statistical publications from national statistical offices, (4) Eurostat: Demographic Statistics, (5) Secretariat of the Pacific Community: Statistics and Demography Programme, and (6) U.S. Census Bureau: International Database.; CIA World Factbooks 18 December 2003 to 28 March 2011

Citation

"Uruguay Economy Stats", NationMaster. Retrieved from http://www.nationmaster.com/country-info/profiles/Uruguay/Economy

NationMaster

Uruguay Economy Profiles (Subcategories)

Adjusted savings 3 International tourism 14
Aid 5 Labor force 3
Balance of payments 34 Long-term debt 4
Bank and trade-related lending 4 Market capitalization of listed companies 4
Budget 15 Merchandise 4
Changes in net 4 Merchandise imports 4
Commercial service 4 Micro 4
Commercial service imports 4 National accounts 105
Companies 37 Natural gas 8
Currency 11 Net current transfers 4
Current account balance 5 Net current transfers from abroad 6
Current transfers 4 Net errors and omissions 4
Debt 62 Net financial flows 20
Economic aid 3 Net income 4
Electricity 8 Net income from abroad 6
Entrepreneurship 12 Net incurrence of liabilities 3
Exports 3 Net trade in goods 4
External balance on goods and services 7 Net trade in goods and services 4
External debt 215 Official development assistance and official aid 4
Final 20 Oil 10
Financial sector 36 Portfolio investment 12
Foreign aid 43 Poverty 18
Foreign direct investment 10 Poverty and inequality 16
GDP 42 Private investment 3
GDP growth 3 Private nonguaranteed debt 4
GDP per capita 4 Public and publicly guaranteed debt service 6
GNI 12 Public and publicly guaranteed (PPG) debt 3
Goods 4 Purchasing power parity 11
Goods imports 4 Reserves 6
Government 11 Retail 3
Government debt 8 Royalty and license fees 8
Government spending 5 Savings 44
Gross capital formation 10 Service 4
Gross domestic savings 6 Service imports 4
Gross fixed capital formation 10 Services 10
Gross national expenditure 9 Spending 73
Gross savings 6 Stock of direct foreign investment 6
Gross value added at factor cost 9 Stocks traded 5
High-technology 4 Tax 72
Household final 23 Total 9
IBRD loans and IDA credits 4 Total debt service 6
Income 24 Tourism 21
Income distribution 4 Tourism expenditures 5
Income payments 4 Tourism receipts 5
Income receipts 4 Tourist arrivals by region of origin 6
Inequality 8 Trade 1448
Inflation 9 Trademark applications 3
Innovation 35 Use of IMF credit 4
Interest payments 3 Welfare 5

1

Uruguay is aptly called The Netherlands of Latin America. It has a significantly liberal form of government with progressive social policies and stable economy. In 2013, Uruguay became prominent for rescinding an effort to punish abortion and making marijuana legal and affordable to all. During the same year, the International Monetary Fund disclosed a strong growth in terms of Gross Domestic Product of four percent. Economic analysts also forecasted a positive trend for the current year. The IMF predicts this growth to be at 3.5 percent which is the 12th successive year that the economy of Uruguay has not gone to recession.

The Central Bank of Montevideo was more optimistic and predicted that the country’s economy will go up by 4.1 percent in 2014. Inflation remains one of the greatest challenges to the Government’s economic officials. It is expected to remain over the three to seven percent target until the latter part of 2015 notwithstanding the fiscal tightening policies being implemented by Uruguay. Real GDP growth will be below 4 percent this year but should increase again to 4.5 percent by 2018.

During the last 10 years, the Uruguayan economy has become more diversified. The economy depends on beef exports, financial services and tourism. However, grain, dairy, pulp and transportation and logistics industries have emerged as new economic sectors. The dairy and pulp sectors benefitted most from strong foreign investments.

Uruguay is a small country of approximately 3.3 million people. It lies between South America’s two biggest economies but has become less dependent on trade with Argentina. Uruguay's main trading partners are the countries of Argentina and although it is making inroads in the international trading community. Business negotiations with other countries include the European Union and the United States.

Posted on 11 Apr 2014

jaacosta47

jaacosta47

423 Stat enthusiast