Overview: Uruguay is a small economy with favorable climate, good soils, and solid hydropower potential. Economic development has been held back by excessive government regulation of economic detail and 50% to 130% inflation. After several years of sluggish growth, real GDP jumped by about 7.5% in 1992. The rise is attributable mainly to an increase in Argentine demand for Uruguayan exports, particularly agricultural products and electricity. In a major step toward greater regional economic cooperation, Uruguay in 1991 had joined Brazil, Argentina, and Paraguay in forming the Southern Cone Common Market (Mercosur). A referendum in December 1992 overturned key portions of landmark privatization legislation, dealing a serious blow to President LACALLE's broad economic reform plan. Hampered by a slowdown in the agricultural sector, the economy grew at only 2% in 1993 compared with 7.5% in 1992. Although inflation declined for the second consecutive year, a surge in the money supply, rising food prices, a record trade deficit, and an increase in the government deficit toward the end of the year foreshadowed troubles ahead in 1994.

National product: GDP - purchasing power equivalent - $19 billion (1993 est.)

National product real growth rate: 2% (1993 est.)

National product per capita: $6,000 (1993 est.)

Inflation rate (consumer prices): 50% (1993 est.)

Unemployment rate: 8.8% (1993 est.)

Budget:
revenues: $2.9 billion
expenditures: $3 billion, including capital expenditures of $388 million (1991 est.)

Exports: $1.6 billion (f.o.b., 1993 est.)
commodities: wool and textile manufactures, beef and other animal products, leather, rice
partners: Brazil, Argentina, US, China, Italy

Imports: $2 billion (f.o.b., 1993 est.)
commodities: machinery and equipment, vehicles, chemicals, minerals, plastics
partners: Brazil, Argentina, US, Nigeria

External debt: $4.2 billion (1993)

Industrial production: growth rate 4.2% (1992 est.), accounts for almost 25% of GDP

Electricity:
capacity: 2,168,000 kW
production: 5.96 billion kWh
consumption per capita: 1,900 kWh (1992)

Industries: meat processing, wool and hides, sugar, textiles, footwear, leather apparel, tires, cement, fishing, petroleum refining, wine

Agriculture: accounts for 12% of GDP; large areas devoted to livestock grazing; wheat, rice, corn, sorghum; self-sufficient in most basic foodstuffs

Economic aid:
recipient: US commitments, including Ex-Im (FY70-88), $105 million; Western (non-US) countries, ODA and OOF bilateral commitments (1970-89), $420 million; Communist countries (1970-89), $69 million

Currency: 1 Uruguayan peso ($Ur) = 100 centesimos
Exchange rates: Uruguayan pesos ($Ur) per US$1 - 4.4710 (January 1994), 3.9484 (1993); new Uruguayan pesos (N$Ur) per US$1 - 3,457.5 (December 1992), 3,026.9 (1992), 2,489 (1991), 1,594 (1990), 805 (1989)
note: on 1 March 1993 the former New Peso (N$Ur) was replaced as Uruguay's unit of currency by the Peso which is equal to 1,000 of the New Pesos; consequently there is a major change in the peso/dollar exchange rate

Fiscal year: calendar year

NOTE: The information regarding Uruguay on this page is re-published from the 1995 World Fact Book of the United States Central Intelligence Agency. No claims are made regarding the accuracy of Uruguay Economy 1995 information contained here. All suggestions for corrections of any errors about Uruguay Economy 1995 should be addressed to the CIA.