Uruguay Economic Data & Projections

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.

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.

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.