Economy of Uruguay

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1 Main areas that made the Uruguayan Economy
2 Raw Data
3 See also
4 References
5 External links

[edit] Main areas that made the Uruguayan Economy

Cattle were introduced to Uruguay before its independence by Hernando Arias de Saveedra, the Spanish Governor of Buenos Aires in 1603. Beef exports in 2006 amounted around a 37% of Uruguayan exportations.^[1]

Wool is a traditional product exported mainly to China, followed by the UK and India.^[2]

Milk and dairy products. Conaprole, National Cooperative of Milk Producers^[3] is the main exporter of dairy food of Latin America (in 2006) among others national and international companies operating in the market. The area of the country dedicated to the dairy food is located mainly in the south west.

Rice. Fine varieties are produced in the lowlands in the east of the country close to Merin Lake on the Uruguay-Brazil border. The national company Saman claims to be the main exporter in Latin America.^[4] Countries it exports to include Brazil, Iran, Peru, South Africa, Chile, Senegal, Argentina, Paraguay, Bolivia, Ecuador, USA, Canada and China.

Tourism: Several seaside resorts, including Punta del Este, regarded as a jet set reduct in South America, are main attractions of Uruguay. International cruises call at Montevideo from October to March every year. Also, Uruguay hosts many year-round international conferences. (The original GATT Uruguay Round concerning trade was, as its name suggests, hosted in Uruguay). Montevideo is home to the headquarters (secretariat) of [Mercosur], the Common Market of the South, whose full members are Uruguay, Argentina, Brazil, Paraguay and Venezuela, associate members Bolivia, Chile, Colombia, Ecuador and Peru.

Software and consulting. Uruguay's well-educated workforce and lower-than-international wages have put Uruguay on the IT map. Both local and international companies operate in the country, some of them with offices worldwide. A product named Genexus,^[5] originally created in Uruguay by a company called ArTech, is noteworthy. Other important developers and consultants include De Larrobla & Asociados^[6] and Grupo Quanam.^[7] Tata Consultancy Services has its headquarters for the Spanish speaking world in Uruguay. Many of these companies have established in ‘Zona America’ Business and Technology Park, in the suburbs of Montevideo.

"With a population of only three million, Uruguay has rapidly become Latin America's outsourcing hub. In partnership with one of India's largest technology consulting firms, engineers in Montevideo work while their counterparts in Mumbai sleep." - The New York Times, Sep 22, 2006

Banking Services. Despite the recent downturn the banking sector is recovering, many private banks in Uruguay having operated without disruption during the 2002 crisis.

Public Sector: The state in Uruguay has an important role in the economy, Uruguay resisted the trend of privatization in Utilities and state owned enterprises in the region. Several Referendums supported the state being in control of the most important utilities and energy companies. Some of the companies have a full monopoly warranted by law (like landline telephony, water), others compete freely with private operators (Insurance, mobile telephony, Banks). Most of them are dominant in the local market. There is strong debate in the Uruguayan society about their role, and future. Some of them made a contribution to the Uruguay state treasury.

The most important state owned companies are:

Republica AFAP (Pension Fund), AFE (railways), ANCAP (Energy), ANCO Mail, dministracion Nacional de Puertos Ports, ANTEL (Telecommunications: Telephony, Mobiles (ANCEL and Data ANTELDATA), BHU Mortgage Bank, BROU (Bank), BSE (Insurance), OSE (Water & Sewage), UTE (Electricity).

Those companies operate under public law, using the a legal entity defined in the Uruguayan Constitution called 'Ente Autonomo' (Meaning Autonomic Entity).

The government also owns parts of other companies operating under private law like the National Airline Carrier PLUNA and others owned totally or partially by the CND National Develoment Corporation.

Other areas of the economy are

Tobacco and beverages, including some fine wines.

Mineral products, including gold, granite and quartz.

Chemical products. Oil Refinery^[8]

Leather and leather products.

Wood, cork and derivative products.

Paper pulp, paper, cardboard and derivatives. A big pulp mill is due to start operating near the city of Fray Bentos, the pulpmill is owned by the finish group Metsa Botnia.

Textiles.

Fisheries

Ceramics, glass and glass products.

Electrical Machinery.

Transport Materials.

Port Services:

[edit] Raw Data

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

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

GDP - per capita: purchasing power parity - $16,000 (2005 est.)

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

Inflation rate (consumer prices): 4,9% (2005 est.)

Labor force: 1.52 million (2005 est.)

Unemployment rate: 12.5% (2005 est.)

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

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

Industrial production growth rate: 5.1% (2005 est.)

Electricity - production: 9,474 GWh (1998)

Electricity - production by source:
fossil fuel: 3.91%
hydro: 95.62%
nuclear: 0%
other: 0.47% (1998)

Electricity - consumption: 6,526 GWh (1998)

Electricity - exports: 2,363 GWh (1998)

Electricity - imports: 78 GWh (1998)

Agriculture - products: wheat, rice, barley, maize, sorghum; livestock; fish

Exports: $2.1 billion (f.o.b., 1999 est.)

Exports - commodities: meat, rice, leather products, vehicles, dairy products, wool, electricity

Exports - partners: Mercosur partners 45%, EU 20%, US 7% (1999 est.)

Imports: $3.4 billion (f.o.b., 1999 est.)

Imports - commodities: road vehicles, electrical machinery, metal manufactures, heavy industrial machinery, crude petroleum

Imports - partners: MERCOSUR partners 43%, EU 20%, US 11% (1999 est.)

Debt - external: $8 billion (1999 est.)

Currency: 1 Uruguayan peso ($Ur) = 100 centesimos

Exchange rates: Uruguayan pesos ($Ur) per US$1 - 29,50 (2002), 11.3393 (1999), 10.4719 (1998), 9.4418 (1997), 7.9718 (1996), 6.3490 (1995), 5.0439 (1994)

Fiscal year: calendar year