Economy - overview Uruguay's small economy benefits from a favorable climate for agriculture and substantial hydropower potential. Economic development has been restrained in recent years by high - though declining - inflation and extensive government regulation. The SANGUINETTI government's conservative monetary and fiscal policies are aimed at continuing to reduce inflation; other priorities include extensive reform of the social security system and increased investment in education. Economic performance remains sensitive to conditions in Argentina and Brazil, largely because more than half of Uruguay's trade is conducted with its partners in Mercosur (the Southern Cone Common Market).

GDP purchasing power parity - $29.1 billion (1997 est.)

GDP - real growth rate 5.1% (1997)

GDP - per capita purchasing power parity - $8,900 (1997 est.)

GDP - composition by sector
agriculture: 10.8%
industry: 27.4%
services: 61.8% (1995)

Inflation rate - consumer price index 15.2% (1997)

Labor force
total: 1.38 million (1997 est.)
by occupation: government 25%, manufacturing 19%, agriculture 11%, commerce 12%, utilities, construction, transport, and communications 12%, other services 21% (1988 est.)

Unemployment rate 10.3% (December 1997)

Budget
revenues: $4 billion
expenditures: $4.3 billion, with capital expenditures of $385 million (1997 est.)

Industries meat processing, wool and hides, sugar, textiles, footwear, leather apparel, tires, cement, petroleum refining, wine

Industrial production growth rate 5.6% (1997)

Electricity - capacity 2.055 million kW (1995)

Electricity - production 7.6 billion kWh (1995)

Electricity - consumption per capita 1,852 kWh (1995)

Agriculture - products wheat, rice, corn, sorghum; livestock; fishing

Exports
total value: $2.7 billion (f.o.b., 1997)
commodities: wool and textile manufactures, beef and other animal products, rice, fish and shellfish, chemicals
partners: Brazil, Argentina, US, Germany, Italy

Imports
total value: $3.7 billion (c.i.f., 1997)
commodities: machinery and equipment, vehicles, chemicals, minerals, plastics, oil
partners: Brazil, Argentina, US, Italy, Germany

Debt - external $4.6 billion (1996 est.)

Economic aid
recipient: ODA, $63 million (1994)

Currency 1 Uruguayan peso ($Ur) = 100 centesimos

Exchange rates Uruguayan pesos ($Ur) per US$1 - 9.98 (January 1998), 9.4448 (1997), 7.9718 (1996), 6.3491 (1995), 5.0529 (1994), 3.9484 (1993)

Fiscal year calendar year

NOTE: The information regarding Uruguay on this page is re-published from the 1998 World Fact Book of the United States Central Intelligence Agency. No claims are made regarding the accuracy of Uruguay Economy 1998 information contained here. All suggestions for corrections of any errors about Uruguay Economy 1998 should be addressed to the CIA.