The mean growing of the Uruguayan economic system was of 5 yearly during 1996-98, but in 1999-2002 the economic system suffered a major downswing, due mostly from the spillover effects of the economic problemsA of its bigger neighbours, that is to state ArgentinaA and Brazil. As a consequence, GDP fell in four old ages by about 20 % , 2002 being the worst twelvemonth. The unemployment rate rose, rising prices surged, and the load of external debt doubled. Economic growing for Uruguay finally bounced back and averaged 8 % yearly during the period 2004-08.
In the recent old ages, Uruguay was non an exclusion in the planetary fiscal crisis as it slowed economic growing, but the state managed to avoid a recession and even kept a positive growing rate of 2.6 % in 2009, it even reached 8.5 % in 2010 and 5.7 % in 2011.
As many other Latin American states, the Uruguayan authorities has implemented drastic plans in order to acquire a more liberated economic system. These plans included take downing duties, commanding shortage disbursement, cut downing rising prices, and cutting the size of authorities. Although Uruguay ‘s economic system is based on free endeavor and private ownership, the authorities has still some engagement in the economic system, and denationalization is still established. Indeed, the province continues to play a major function in the economic system, having either to the full or partly companies in insurance, H2O supply, electricity, telephone service, crude oil refinement, air hoses, postal service, railroads, and banking.
Uruguay depends less on Argentina and Brazil by diversifying its trade in the last twosome of old ages. The state is a founding member of MERCOSUR, the Southern Cone trading axis besides composed of Argentina, Brazil, and Paraguay.
Entire bilateral trade in 2011 was over $ 1.5 billion, with a sum of about $ 1.3 billion in U.S. exports to Uruguay. The chief U.S. exports are machinery, electrical machinery, perfumery and cosmetics, playthings and athleticss equipment. What Uruguay gross revenues to the United States is fundamentally beef, prepared meat ; dairy, eggs, and honey. Other major markets for Uruguay are Brazil, Argentina, China, Russia, Spain, and Venezuela. Uruguayan exports are involves few merchandises such as meat, rice, soy, leather, dairy merchandises, and wood accounting for over half of entire one-year export gross revenues. Wool is a traditional merchandise exported chiefly to America, followed by the UK and India and in general, Uruguay ‘s top imports are oil and capital goods. There are about 100 U.S. companies runing in Uruguay.
One country in which Uruguay is really good is in the production of milk and dairy merchandises. The group Conaprole ( National Cooperative of Milk Producers ) A is the chief exporter of dairy merchandises in Latin America thanks to the south west part of the state which is dedicated to the production of the dairy nutrient. Another basic nutrient Uruguay sells good is rice. All right assortments are produced in the E of the state near to Merin lake on the Uruguay-Brazil boundary line. The national company Saman is reported to be one of the chief exporters in Latin America if non the best.A Saman exports its merchandises to Brazil, Iran, Peru, South Africa, Chile, Senegal, Argentina, Bolivia, USA, Canada and China.
As for touristry, Uruguay enjoys several seaside resorts like Punta del EsteA or Punta del DiabloA in the south-eastern of MaldonadoA and Rocha which are considered to be one of the chief attractive forces of Uruguay. Besides, Uruguay hosts many year-around international conferences, Montevideo being the place to the Secretariat of Mercosur.
Refering Software and consulting, we can state that Uruguay ‘s knowing work force and lower rewards have put the state as one of the most interesting topographic point to make package and consulting. In that procedure, we can call De Larrobla & A ; Asociados, A GreyconA and Quanam for being of import developers and advisers. In a higher degree, Tata Consultancy ServicesA has its central office for the Spanish speech production universe in Uruguay. Here ‘s what The New York Times said in September 22, 2006 about Uruguay ‘s development in the field: “ With a population of merely three million, Uruguay has quickly become Latin America ‘s outsourcing hub. In partnership with one of India ‘s largest engineering consulting houses, applied scientists in Montevideo work while their opposite numbers in Mumbai slumber. ”
The following sector we need to speak about is an of import one in footings of good fiscal activities for a state, this sector is banking services. Banking has ever been one of the strongest service export sectors in the state, and even got the award to be called “ the Switzerland of America ” at one point, chiefly for its banking sector and stableness. The largest bank in Uruguay is Banco Republica, or BROU which is state-owned ; another of import province bank is the BHU. Almost 20 private Bankss, most of them subdivisions of international Bankss, operate in the state such as Banco Santander, ABN and Citibank, for illustration. Today, Uruguay has to the full recovered from the fiscal crisis that caused a tally on its Bankss.
Finally the last sector relevant to the economic system of Uruguay is the public sector: as stated earlier, the Uruguayan authorities plays an of import function in the economic system, and in fact the dwellers seems to prefer this function of the authorities in their houses given that several Referendums supported the province being in control of the most of import public-service corporations and energy companies. Some of the companies have a full monopoly warranted by jurisprudence ; it is the instance of land line telephone and H2O ) , whereas others compete freely with private operators like insurance, nomadic telephone and Banks. As a regulation, the province owned endeavors are dominant in the local market. However a new and strong argument is looking in the Uruguayan society about the function and hereafter of such companies.
The most of import province owned companies are: Republica AFAPA ( Pension Fund ) , A AFEA ( Railways ) , A ANCAPA ( Energy ) , A ANCOA ( Mail ) , Administracion Nacional de Puertos ( Ports ) , A ANTELA ( Telecommunications: Telephone, Mobiles ( ANCELA and DataA ANTELDATA ) ) , BHU ( Mortgage Bank ) , A BROUA ( Bank ) , BSE ( Insurance ) , OSE ( Water & A ; Sewage ) , A UTEA ( Electricity ) . These companies operate under public jurisprudence, utilizing a legal entity defined in the Uruguayan Constitution called ‘Ente Autonomo ‘ ( Meaning Autonomic Entity ) . The authorities besides owns parts of other companies runing under private jurisprudence like the National Airline CarrierA PLUNAA and others owned wholly or partly by the CND National Development Corporation.
Uruguay enjoys a positive investing clime, with a strong legal system and unfastened fiscal markets. Its great advantage is that it gives equal intervention to national and foreign investors. Besides, except for really few sectors, there is no favoritism toward investing by beginning or beginning. Investings are allowed without anterior mandate, and there is to the full free remittal of capital and net incomes. In 2007, a edict passed supplying important inducements to local and foreign investors. As a consequence, domestic investing and foreign direct investing ( FDI ) , which have been traditionally low, increased significantly in recent old ages. ( Uruguay authorities, 2012. Retrieved from web site: hypertext transfer protocol: //www.state.gov/r/pa/ei/bgn/2091.htm )
Economy of Uruguay
From Wikipedia, the free encyclopaedia
[ edit ] Specialties of Uruguay
[ edit ] Raw Data
Industrial production growing rate: A 12.6 % ( 2006 est. )
Electricity – production: A 9,474 GWh ( 1998 )
fossil fuel: A 3.91 %
hydro: A 95.62 %
atomic: A 0 %
other: A 0.47 % ( 1998 )
Electricity – ingestion: A 6,526 GWh ( 1998 )
Electricity – exports: A 2,363 GWh ( 1998 )
Electricity – imports: A 78 GWh ( 1998 )
Agriculture – merchandises: A wheat, A rice, A barley, A corn, A sorghum ; A farm animal ; A angle
Exchange rates: A Uruguayan pesos per US dollar – 24.048 ( 2006 ) , 24.479 ( 2005 ) , 28.704 ( 2004 ) , 28.209 ( 2003 ) , 21.257 ( 2002 )