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Uruguay Balance of Payments
Uruguay's trade balance was positive and steadily
improving
during most of the 1980s. However, the current account
balance
remained negative until the mid-1980s because of the
burden of
debt service (see
table 16, Appendix). In 1986, 1988, and
1989,
the trade balance was large enough to make the current
account
balance positive. An exception to this pattern was 1987
because
imports surged as the economy recovered from the
recession. The
capital account balance was positive for most of the 1980s
because Uruguay continued to borrow from abroad to help
cover its
debt-service payments and because foreigners continued to
deposit
money in Uruguayan banks. Uruguay's reserves decreased
during
most years, but as of 1988 the nation still had
substantial gold
reserves--more than 80 tons. During the 1989 presidential
campaign, at least one candidate proposed selling the gold
reserves to pay off the foreign debt. Lacalle opposed such
a
plan, however.
Data as of December 1990
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