Uruguay Economy - 2004

Economy - overview:
Uruguay's well-to-do economy is characterized by an export-oriented agricultural sector, a well-educated workforce, 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 massive withdrawals by Argentina of dollars deposited in Uruguayan banks led to a plunge in the Uruguyan 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 serious banking crisis. Unemployment rose to nearly 20% in 2002, inflation surged, and the burden of external debt doubled. Cooperation with the IMF and the US has limited the damage. The debt swap with private creditors carried out in 2003, which extended the maturity dates on nearly half of Uruguay's $11.3 billion in public debt, substantially alleviated the country's amortization burden in the coming years and restored public confidence. The economy is expected to resume growth in 2004 (perhaps 4% or more) as a result of high commodity prices for Uruguayan exports, the weakness of the dollar against the euro, growth in the region, low international interest rates, and greater export competitiveness. On the negative side, in December 2003 the electorate voted to repeal the law permitting a cautious liberalization of the energy industry.

GDP:
purchasing power parity - $42.94 billion (2003 est.)

GDP - real growth rate:
0.3% (2003 est.)

GDP - per capita:
purchasing power parity - $12,600 (2003 est.)

GDP - composition by sector:
agriculture: 9%
industry: 24%
services: 67% (2001)

Population below poverty line:
23.7% (2002)

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

Distribution of family income - Gini index:
44.8 (1999)

Inflation rate (consumer prices):
10.2% (2003 est.)

Labor force:
1.3 million (2002)

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

Unemployment rate:
16.1% (November 2003)

Budget:
revenues: $2.74 billion
expenditures: $3.4 billion, including capital expenditures of $193 million (2002)

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

Industrial production growth rate:
-2.5% (Jan-Sep 2003 est.)

Electricity - production:
7.963 billion kWh (2001)

Electricity - production by source:
fossil fuel: 0.7%
hydro: 99.1%
other: 0.3% (2001)
nuclear: 0%

Electricity - consumption:
6.152 billion kWh (2001)

Electricity - exports:
1.377 billion kWh (2001)

Electricity - imports:
123 million kWh (2001)

Oil - production:
0 bbl/day (2001 est.)

Oil - consumption:
41,500 bbl/day (2001 est.)

Oil - exports:
NA

Oil - imports:
NA

Natural gas - production:
0 cu m (2001 est.)

Natural gas - consumption:
40 million cu m (2001 est.)

Natural gas - exports:
0 cu m (2001 est.)

Natural gas - imports:
40 million cu m (2001 est.)

Agriculture - products:
rice, wheat, corn, barley; livestock; fish

Exports:
$2.164 billion f.o.b. (2003 est.)

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

Exports - partners:
Brazil 22.1%, US 8.4%, Germany 5.4%, Argentina 5.1%, Mexico 4.2%, Italy 4.1%, Paraguay 4.1%, Spain 4% (2002)

Imports:
$1.989 billion f.o.b. (2003 est.)

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

Imports - partners:
Argentina 23.1%, Brazil 17.5%, US 8.9%, Mexico 4.7%, China 4% (2002)

Debt - external:
$10.2 billion (June 2003)

Economic aid - recipient:
$NA

Currency:
Uruguayan peso (UYU)

Currency code:
UYU

Exchange rates:
Uruguayan pesos per US dollar - 28.21 (2003), 21.26 (2002), 13.32 (2001), 12.1 (2000), 11.34 (1999)