Economic Overview
Uruguay's economy is characterized by an export-oriented agricultural sector, a well-educated work force, 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 argentina made massive withdrawals of dollars deposited in uruguayan banks, which led to a plunge in the uruguayan 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 banking crisis. the unemployment rate rose to nearly 20% in 2002, inflation surged, and the burden of external debt doubled. cooperation with the imf helped stem the damage. uruguay in 2007 improved its debt profile by paying off $1.1 billion in imf debt, and continues to follow the orthodox economic plan set by the fund in 2005. the construction of a pulp mill in fray bentos, which represents the largest foreign direct investment in uruguay's history at $1.2 billion, came online in november 2007 and is expected to add 1.6% to gdp and boost already rising exports. the economy has grown strongly since 2004 as a result of high commodity prices for uruguayan exports, a strong peso, growth in the region, and low international interest rates.
Environmental Issues
Water pollution from meat packing/tannery industry; inadequate solid/hazardous waste disposal
Government Type
Constitutional republic
Population
3,477,778 (july 2008 est.)
Location
Southern south america, bordering the south atlantic ocean, between argentina and brazil
Area
Total: 176,220 sq km
land: 173,620 sq km
water: 2,600 sq km
Slightly smaller than the state of washington
Country Aliases
Conventional long form: oriental republic of uruguay
conventional short form: uruguay
local long form: republica oriental del uruguay
local short form: uruguay
former: banda oriental, cisplatine province
Capital
Name: montevideo
geographic coordinates: 34 53 s, 56 11 w
time difference: utc-3 (2 hours ahead of washington, dc during standard time)
daylight saving time: +1hr, begins second sunday in october; ends second sunday in march
Military Service
18 years of age for voluntary and compulsory military service; enlistment is voluntary in peacetime, but the government has the authority to conscript in emergencies (2007)
International Disputes
In jan 2007, icj provisionally ruled uruguay may begin construction of two paper mills on the uruguay river, which forms the border with argentina, while the court examines further whether argentina has the legal right to stop such construction with potential environmental implications to both countries; uncontested dispute with brazil over certain islands in the quarai/cuareim and invernada streams and the resulting tripoint with argentina
Sources: Central Intelligence Agency (CIA)
