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 in bulk by 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 lowered duties, controlled shortage disbursement, reduced rising prices, and cut the size of authorities. Although Uruguay ‘s economic system is based on free companies and private ownership, the authorities still has a certain per centum of engagement in the economic system, and denationalization is still established. Indeed, the province continues to play a major function in the economic system having companies either to the full or partly in insurance, telephone service, electricity, air hoses, railroads, postal service, crude oil refinement 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 United States chiefly exports perfumery and cosmetics, machinery, playthings and athleticss equipment. What Uruguay sells to the United States is fundamentally prepared meat, beef ; dairy, and honey. Other major markets for Uruguay are Brazil, Argentina, Venezuela China, and Spain. Uruguayan exports involves few merchandises ( meat, rice, leather, dairy merchandises ) , and wood accounting for more than half of the entire one-year export gross revenues. Wool is a traditional merchandise exported chiefly to America, and in general, Uruguay ‘s best 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 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 Este ( image on the right ) A 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 biggest bank in the state is Banco Republica, or BROU which is state-owned ; another of import province bank is the BHU. Almost 20 private Bankss ( most of them are subdivisions of international Bankss ) operate in the state such as Banco Santander, ABN and Citibank, for illustration. Today, Uruguay has wholly recovered from the fiscal crisis that had a serious impact 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 were on favour of the province to command the most of import public-service corporations and energy companies. Some of these houses 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 state-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 chief state-owned companies in Uruguay are: A AFEA ( railroads ) , A ANTEL ( Telecommunications: Telephone and Mobiles ) , BHU ( Mortgage Bank ) , A BROUA ( Bank ) , and BSE ( Insurance ) .
Uruguay has a positive investing state of affairs thanks to 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 since investings are allowed without anterior mandate. 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 ever been low, have significantly increased in recent old ages.
( Uruguay authorities, 2012: hypertext transfer protocol: //www.state.gov/r/pa/ei/bgn/2091.htm )
( Economy of Uruguay Wikipedia – February, 2012: hypertext transfer protocol: //en.wikipedia.org/wiki/Economy_of_Uruguay )
( Global inch your beginning for planetary concern cognition. ( 2012 ) : . hypertext transfer protocol: //globaledge.msu.edu/countries/uruguay/economy/ )