Uruguay Economy - 2006

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. A debt swap with private-sector creditors in 2003 extended the maturity dates on nearly half of Uruguay's then $11.3 billion of public debt and helped restore public confidence. The economy grew about 10% in 2004 as a result of high commodity prices for Uruguayan exports, a competitive peso, growth in the region, and low international interest rates, but slowed to 6.1% in 2005.

GDP (purchasing power parity):
$54.58 billion (2005 est.)

GDP (official exchange rate):
$17.03 billion (2005 est.)

GDP - real growth rate:
6.1% (2005 est.)

GDP - per capita (PPP):
$16,000 (2005 est.)

GDP - composition by sector:
agriculture: 7.1%
industry: 27.7%
services: 65.2% (2005 est.)

Labor force:
1.52 million (2005 est.)

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

Unemployment rate:
12.5% (2005 est.)

Population below poverty line:
22% of households (2004)

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

Distribution of family income - Gini index:
44.6 (2000)

Inflation rate (consumer prices):
4.9% (2005 est.)

Investment (gross fixed):
12.2% of GDP (2005 est.)

Budget:
revenues: $4.468 billion
expenditures: $4.845 billion; including capital expenditures of $193 million (2005 est.)

Public debt:
793.4% of GDP (June 2005 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:
5.1% (2005 est.)

Electricity - production:
8.611 billion kWh (2003)

Electricity - consumption:
7.762 billion kWh (2003)

Electricity - exports:
900 million kWh (2003)

Electricity - imports:
654 million kWh (2003)

Oil - production:
435 bbl/day (2003 est.)

Oil - consumption:
38,000 bbl/day (2003 est.)

Oil - exports:
NA bbl/day

Oil - imports:
NA bbl/day

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

Natural gas - consumption:
60 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:
-$19 million (2005 est.)

Exports:
$3.55 billion f.o.b. (2005 est.)

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

Exports - partners:
US 17.4%, Brazil 16%, Germany 6.3%, Argentina 6.2%, Mexico 4.2% (2004)

Imports:
$3.54 billion f.o.b. (2005 est.)

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

Imports - partners:
Argentina 19.4%, Brazil 19%, Paraguay 12.9%, US 9.2%, China 6% (2004)

Reserves of foreign exchange and gold:
$2.654 billion (2005 est.)

Debt - external:
$11.22 billion (June 2005 est.)

Economic aid - recipient:
$NA

Currency (code):
Uruguayan peso (UYU)

Exchange rates:
Uruguayan pesos per US dollar - 24.479 (2005), 28.704 (2004), 28.209 (2003), 21.257 (2002), 13.319 (2001)