Uruguay Overview

The economy slackened in 2005. Annual GDP growth rate was 12.3% in 2004, 6% in 2005 and an estimated 5% in 2006, according to the IMF. After being seriously affected by the Argentinean crisis and the Brazilian real devaluation, the country is now reviving : besides a positive growth, external trade is expanding and tourism is enhancing. However Uruguay remains fragile: public debt is increasing, unemployment affects 20% of the active population and 30% of the population live in poverty.

The agriculture sector provides 12% of the GDP and is the largest exporting sector. Wine growing, cereals and rice are the main crops. Breeding is also one of agriculture's main activities. The manufacturing industry account for about 28% of the GDP. Services add up to 60% of the GDP, and financial services are first plan activities. Tourism is in a full swing.

Uruguay is a member of Mercosur (common market between Uruguay, Paraguay, Argentina, and Brazil). The country's top three trade partners are Argentina, Brazil and the United States. Uruguay mainly imports hydrocarbons, machinery, electrical material and vehicles. Foreign investments are totally free in Uruguay and are not submitted to any declaration.