Uruguay 

Uruguay country policy

Policy established 11 October 2011

• No Restrictions
• The country ceiling is 1500 mln euro
• Early warning signal 1050 mln euro
• - of which was used as at 2012-02-29 0 mln euro

Country class: 3

Uruguay country facts

Atradius Dutch State Business Economic Research

Country Report last updated 13 August 2011 
Country URUGUAY 

Political Situation

Stable

Head of state
President José Mujica.

Form of government
Government of the left-wing Encuentro Progresista-Frente Amplio (EP-FA).

Internal Economic Situation
Strong Recovery

General situation
Small, open economy, heavily relying on the two main  neighbouring markets. After a moderation of real GDP-growth in 2009 (no recession), strong economic upswing since 2010 thanks to booming exports to Brazil and Argentina, buoyant private consumption and strongly recovered investments. The large investments in two cellulose plants ($1.7 bn, =10% GDP) are completed. High inflation (est. 8% in 2011) because of the upward pressure on wages in a tight labour market and fuel/food subsidization that is only gradually cut back. Low corruption: 24th of 178 on the TI Index. 
 
External Economic Situation
Good Liquidity; Improved Solvency

Main sources of foreign exchange
Agrarian products (meat, wool, skins), services, tourism.

Main foreign markets
EU (23%), USA (17%), Brazil (15%), Argentina (7%).

Main expenses of foreign exchange
Intermediate products, energy.

Balance of payments 
In 2009 a small current account surplus because imports fell stronger than exports. In 2010/’11 more normal current account: deficits are financed by capital imports and private/ multilateral lending, underpinning high reserves and an effective appreciation of the peso exchange rate.