Business in Uruguay Montevideo. Economy foreign trade

Course summary (Business in Uruguay):

Uruguayan economy

Uruguay is a country free of epidemic outbreaks and natural disasters. With an area of 176.215 km2, it is bordered by Brazil to the north and northeast, by Argentina to the west and by the River Plate and Atlantic Ocean to the south. It is administratively divided into 19 departments.

Uruguay constitutes the best "entrance gate" to the region, especially enhanced by the provisions set forth by the MERCOSUR agreement on trade and business between member countries of the block. Thus, Uruguay becomes the geographical centre of a market with more than 215 millions of inhabitants, with the highest income per capita of the continent and a GDP of approximately 600 billion dollars.

Uruguay’s long political and economic stability and its open-minded and cosmopolitan people place the country as an ideal platform from where to project business to the region and the world.

Together with Chile, it leads the ranking of countries with lower corruption in the Public Sector according to the Corruption Perceptions Index (CPI), yearly prepared by "Transparency International". 2008 PCI classified 180 countries on a scale ranging from zero (very corrupt perception) to 10 (perception of lack of corruption); Uruguay obtained 6.9 points.

According to the Economic Freedom Index, Uruguay is the first country in the region (The Heritage Foundation - 2007). This marker includes the following factors: corruption, non-tariff barriers to trade, tax burden, Rule of Law, regulatory burden, restrictions to banks, Job Market regulations and Black Market activities.

The government's economic program aims at securing macroeconomic stability, making efforts to improve the business climate so as to increase production, investments and employment.

In the last years the Uruguayan economy has gone through a major increase. The GDP by inhabitant is in continuous expansion. Actual salaries have sustainably increased. The employment rate showed an important increase since 2006, while unemployment rate has decreased by almost 7.5%. Poverty and indigence levels have decreased as a result of the social policies carried out by the Government.

Improvements in the job market conditions, fostered by the increase in employment and household income, have allowed a remarkable growth in private consumption.

With regard to the international role, Uruguay has diversified its exports destination, which allows for a reduction in external vulnerabilities. In the last years, the private sector has grown at a sustained pace. Foreign direct investment (FDI) reached a historical record. Economic activity has increased significantly within a context marked by inflation under control and public sector accounts in line with official objectives.

The GDP of the Uruguayan primary industry represented approximately 15.95% of 2007’s aggregate. This figure is made up by 11.65% of agricultural activity, 0.09% of fishing activity, 0.22% of mining activity and 3.99% related to power, gas and water sectors.

The GDP of the secondary industry in Uruguay represented approximately 21.72% of 2007’s aggregate. This figure is made up by 19.33% of manufacturing industries activity and 2.39% of building industry.

The tertiary sector, according to 2008’s annual statistics of the National Statistics Institute represented 58.28% of GDP of Uruguay. It covers financial establishments, insurances, real estates and services rendered to companies; transport storage and communications; community, social and personal services; trade, restaurants and hotels. This sector has become a major economy promoter. Support services to trade and the export of services are key factors for the growth of the country. Transport and logistics, information and communication technologies and tourism are some of the representative sub-sectors in Uruguay.

International Economic Relations. Uruguay is member of: Southern Common Market (MERCOSUR), Andean Community (CAN) (Partner Country), Latin American Integration Association (ALADI), Union of South American Nations (UNASUR), Latin American and Caribbean economic System (SELA), Economic Commission for Latin America (ECLAC), Inter-American Development Bank (IDB), Forum for East Asia-Latin America Cooperation (FEALAC), Summit of South American Arab Countries (ASPA), Organization of American States (OEA), IMF, World Trade Organization (WTO), World Bank, UNCTAD, United Nations, ...

Uruguay has bilateral Free Trade Agreements FTA with: Mexico - Uruguay European Union, India, Gulf Cooperation Council (GCC)

Cristalpet belongs to the "GRUPO CRISTALERIAS", founded in 1914, and it is formed by 100% national capitals. It is dedicated basically to the manufacture of PET performs by injection of returnable and non-returnable bottles by the process of blowing.

Uruguay borders: Brazil and Argentina.

Business, Uruguay, Montevideo, Economy, foreign, Trade, Uruguayan, international, trade, exports, imports, FDI, Uruguayan, economy, Sectors, ICT, financial, services