sun bearing a human face known as the Sun of May and
16 rays alternately triangular and wavy

Economy Uruguay

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
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 grew about 10% in 2004 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.

GDP (purchasing power parity):
$49.27 billion (2004 est.)

GDP - real growth rate:
10.2% (2004 est.)

GDP - per capita:
purchasing power parity - $14,500 (2004 est.)

GDP - composition by sector:
agriculture: 7.9%
industry: 27.4%
services: 64.8% (2004 est.)

Labor force:
1.56 million (2004 est.)

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

Unemployment rate:
13% (2004 est.)

Population below poverty line:
21% of households (2003)

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):
7.6% (2004 est.)

Investment (gross fixed):
9.6% of GDP (2004 est.)

Budget:
revenues: $3.332 billion
expenditures: $3.787 billion, including capital expenditures of $193
million (2004 est.)

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

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