Uruguay
Chamber of Commerce Country Factsheet Last update: 03.03.2020
Introduction
Montevideo, founded by the Spanish in 1726 as a military stronghold, soon took advantage of its natural harbor to become an important commercial center. Claimed by Argentina but annexed by Brazil in 1821, Uruguay declared its independence four years later and secured its freedom in 1828 after a three-year struggle. The administrations of President Jose BATLLE in the early 20th century launched widespread political, social, and economic reforms that established a statist tradition. A violent Marxist urban guerrilla movement named the Tupamaros, launched in the late 1960s, led Uruguay's president to cede control of the government to the military in 1973. By yearend, the rebels had been crushed, but the military continued to expand its hold over the government. Civilian rule was restored in 1985. In 2004, the left-of-center Frente Amplio Coalition won national elections that effectively ended 170 years of political control previously held by the Colorado and National (Blanco) parties. Uruguay's political and labor conditions are among the freest on the continent.
Source: The CIA World Factbook - Uruguay
Macroeconomic indicators
Uruguay has a free market economy characterized by an export-oriented agricultural sector, a well-educated workforce, and high levels of social spending. Uruguay has sought to expand trade within the Common Market of the South (Mercosur) and with non-Mercosur members, and President VAZQUEZ has maintained his predecessor’s mix of pro-market policies and a strong social safety net.
Following financial difficulties in the late 1990s and early 2000s, Uruguay's economic growth averaged 8% annually during the period 2004-08. The 2008-09 global financial crisis put a brake on Uruguay's vigorous growth, which decelerated to 2.6% in 2009. Nevertheless, the country managed to avoid a recession and keep positive growth rates, mainly through higher public expenditure and investment; GDP growth reached 8.9% in 2010 but slowed markedly in the period 2012-16 as a result of a renewed slowdown in the global economy and in Uruguay's main trade partners and Mercosur counterparts, Argentina and Brazil. Reforms in those countries should give Uruguay an economic boost. Growth picked up in 2017.
Source: The CIA World Factbook - Economic overview Uruguay
IMF Statistics:
| Subject descriptor | 2018 | 2019 | 2020 | 2021 | 2022 |
|---|---|---|---|---|---|
| Gross domestic product, constant prices Percent change | 1.620 | 0.400 | 2.300 | 3.000 | 2.000 |
| Gross domestic product, current prices U.S. dollars (Billions) | 59.651 | 59.918 | 62.917 | 66.885 | 69.496 |
| Gross domestic product per capita, current prices U.S. dollars (Units) | 17,014.132 | 17,029.251 | 17,818.921 | 18,877.954 | 19,549.336 |
| Inflation, average consumer prices Percent change | 7.607 | 7.633 | 7.216 | 7.159 | 6.960 |
| Volume of imports of goods and services Percent change | 0.720 | 2.237 | 11.336 | 8.667 | 5.639 |
| Volume of exports of goods and services Percent change | -0.278 | -4.557 | 1.906 | 2.066 | 7.107 |
| Unemployment rate Percent of total labor force | 8.367 | 8.568 | 8.145 | 7.229 | 7.327 |
| Current account balance U.S. dollars (Billions) | -0.374 | -0.996 | -1.865 | -2.540 | -2.162 |
| Current account balance Percent of GDP | -0.626 | -1.662 | -2.964 | -3.797 | -3.111 |
Source: IMF Statistics - Uruguay
Luxembourg and the country
Existing conventions and agreements
Non double taxation agreement
In order to promote international economic and financial relations in the interest of the Grand Duchy of Luxembourg, the Luxembourg government negotiates bilateral agreements for the avoidance of double taxation and prevent fiscal evasion with respect to Taxes on Income and on fortune with third countries.
- Convention from 10.03.2015 (Memorial 2016, A No.270, p.4924)
- Effective as of 01.01.2018 (Memorial 2016, A No.270, p.4924)
Air Services agreement
None
Source: Administration des contributions directes
Further information
Foreign Trade
The Statec Foreign Trade statistics provide information on the trade of goods - by product and by country. This information is collected respectively through the INTRASTAT declaration and on the basis of customs documents.
You can see the statistics on the website of the Statec.
Contact Points in Uruguay
Economic and Commercial Attaché (B.E)
Mrs Jimena VILLAR BOUCHACOURT
1248, Dr Luis A. de Herrera, Ofic. 714
C.P. 11300 Montevideo - Uruguay
Tel.: (+598) 2 628 07 28 / (+598) 2 628 92 88
Fax: (+598) 2 622 70 99
E-mail: montevideo(at)hub.brussels / bruplata(at)adinet.com.uy
Source: Invest-export.brussels
Country risk as defined by Office du Ducroire for Uruguay
Ducroire is the only credit insurer covering open account deals in over 200 countries. A rating on a scale from 1 to 7 shows the intensity of the political risk. Category 1 comprises countries with the lowest political risk and category 7 countries with the highest. Macroeconomics experts also assess the repayment climate for all buyers in a country.
Link: Ducroire Office - Country Risk for Uruguay
Other useful links
- CIA World factbook on Uruguay
- Invest in Uruguay
- Fiche pays Uruguay de l'attachée belge
- Secteurs porteurs Uruguay (attachée belge)
- Doing Business in Uruguay
- Das ist Uruguay
- Invest-export.brussels
- Economic Freedom Index - Uruguay
The Chamber of Commerce and the country
Past events
- 18.10.2019
Journée d'Opportunités d'Affaires : Uruguay (Montevidéo)
- 02.12.2018 - 08.12.2018
Economic Mission to Chile, Uruguay and Argentina
- 08.03.2018
Journée d'Opportunités d'Affaires : Uruguay
- 14.06.2017
Argentina, Chile, Uruguay: countries seminar
- 23.04.2015 - 24.04.2015
Journées d'Opportunités d'Affaires: l’Uruguay, Cuba, le Chili, la Colombie, le Mexique et l’Argentine