Uruguay Economic Outlook
Diversified and stable economy:
Uruguay boasts one of Latin America's most stable and diversified economies, with strong agricultural exports, a well-developed services sector, and a growing technology industry. The country has benefited from political stability and sound economic policies that have fostered steady growth and investor confidence. Agriculture, particularly beef and soy exports, remains a key pillar of the economy, alongside a robust financial sector and an emerging digital economy. Uruguay's stable macroeconomic environment, transparent institutions, and low corruption levels make it an attractive destination for foreign direct investment.
High quality of life and economic resilience:Uruguay has high income levels, strong social safety nets, and a well-functioning legal system. Its high Human Development Index (HDI) and strong education system support long-term economic stability. The country's banking sector is well-regulated, and trade policies favor openness. Uruguay has also made progress in renewable energy, with nearly 95% of its electricity coming from renewable sources, positioning itself as a regional leader in sustainability.
Challenges:Despite its strengths, Uruguay faces challenges such as a small domestic market, high labor costs, and relatively slow economic growth compared to larger regional economies. Additionally, public debt remains elevated, and pension system reform is needed to address demographic challenges. The country also struggles with labor market rigidities, which can hinder business expansion and innovation.
Uruguay economic outlook:Uruguay's economy is expected to grow at a moderate pace, supported by foreign investment, services exports, and its strong institutional framework. Expanding the technology and renewable energy industries will be crucial for sustaining long-term prosperity. To maintain its competitive edge, Uruguay will need to continue diversifying its economy, improving labor market flexibility, and ensuring fiscal sustainability through structural reforms.
Uruguay's Macroeconomic Analysis:
Nominal GDP of USD 77.2 billion in 2023.
Nominal GDP of USD 81.0 billion in 2024.
Nominal GDP of USD 81.0 billion in 2024.
GDP per capita of USD 23,115 compared to the global average of USD 10,589.
GDP per capita of USD 22,650 compared to the global average of USD 10,589.
GDP per capita of USD 21,636 compared to the global average of USD 10,589.
Average real GDP growth of 1.5% over the last decade.
Average real GDP growth of 1.4% over the last decade.
Average real GDP growth of 1.4% over the last decade.
Sector Analysis
In 2022, services accounted for 66.3% of overall GDP, manufacturing 9.5%, other industrial activity 18.6%, and agriculture 5.6%. Looking at GDP by expenditure, private consumption accounted for 66.8% of GDP in 2015, government consumption 13.8%, fixed investment 17.3%, and net exports 2.1%.International trade
In 2023, manufactured products made up 19.1% of total merchandise exports, mineral fuels 0.2%, food 66.2%, ores and metals 0.4% and agricultural raw materials 14.1%, with other categories accounting for 0.0% of the total. In the same period, manufactured products made up 66.0% of total merchandise imports, mineral fuels 16.0%, food 15.7%, ores and metals 1.5% and agricultural raw materials 0.8%, with other goods accounting for 0.0% of the total. Total exports were worth USD 16.40 billion in 2024, while total imports were USD 12.90 billion.Main Economic Indicators
Economic growthThe economy recorded average annual growth of 1.5% in the decade to 2023. To read more about GDP growth in Uruguay, go to our dedicated page.
Fiscal policy
Uruguay's fiscal deficit averaged 3.3% of GDP in the decade to 2023. Find out more on our dedicated page.
Unemployment
The unemployment rate averaged 8.3% in the decade to 2024. For more information on Uruguay's unemployment click here.
Inflation
Inflation averaged 7.8% in the decade to 2024. Go to our Uruguay inflation page for extra insight.
Monetary Policy
Uruguay's monetary policy rate ended 2024 at 8.75%, down from 9.25% a decade earlier. See our Uruguay monetary policy page for additional details.
Exchange Rate
From end-2014 to end-2024 the peso weakened by 45.2% vs the U.S. dollar. For more info on the peso, click here.
Economic situation in Uruguay
Annual GDP growth lost traction for the third quarter running in Q1, coming in at 3.4% (Q4 2024: +3.5% yoy). The main culprit was private consumption, which forms two-thirds of GDP and grew at a milder pace, likely hampered by a higher unemployment rate. On the external front, goods and services exports lost steam while imports accelerated. That said, the economy continued to expand at a robust pace compared to the pre-Covid decade mean and the Latin American average, boosted by a stronger harvest season. Moreover, government spending rose at a faster pace, and fixed investment growth remained supportive. Turning to Q2, economic activity should be losing further traction as recent interest rate hikes dampen fixed investment and heightened trade uncertainty weighs on the external sector; merchandise exports growth more than halved in April from Q1’s average.Uruguay Economic Forecasts
Projections out to 2034.51 indicators covered including both annual and quarterly frequencies.
Consensus Forecasts based on a panel of 20 expert analysts.
Want to get insight on the economic outlook for Uruguay in the coming years? FocusEconomics collects projections out to 2034 on 51 economic indicators for Uruguay from a panel of 20 analysts at the leading national, regional and global forecast institutions. These projections are then validated by our in-house team of economists and data analysts, and averaged to provide one Consensus Forecast you can rely on for each indicator. This means you avoid the risk of relying on out of date, biased or outlier forecasts. Our Consensus Forecasts can be visualized in whichever way best suits your needs, including via interactive online dashboards , direct data delivery and executive-style reports which combine analysts' projections with timely written analysis from our in-house team of economists on the latest developments in the Uruguay economy. To download a sample report on the Uruguay's economy, click here. To get in touch with our team for more information, fill in the form at the bottom of this page.