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Uruguay ECONOMY
Gross Domestic Product (GDP): Approximately
US$9.2
billion in 1990, or US$2,970 per capita, making it one of
highest-income countries in Latin America. As result of
severe
recession, real GDP declined by almost 17 percent during
1981-84
but increased after 1985. Led by growth in agriculture and
fishing sectors, GDP grew by 6.6 percent in 1986 and 4.9
percent
in 1987 but slowed to 0.5 percent in 1988, 1.5 percent in
1989,
and 0.9 percent in 1990.
Agriculture: Self-sufficient in most basic
foodstuffs.
About 90 percent of country, including 8 percent arable
land, can
be used for some kind of agriculture, mainly for extensive
livestock grazing, wheat, rice, corn, and sorghum. In 1988
agricultural activity, including fishing, directly
generated 13
percent of GDP and provided over half of value of exports.
Although sector's growth rate in 1989 was low (1 percent),
its
output increased an estimated 3.5 percent in 1990.
Industry: Accounted for 33 percent of GDP in
1988.
Industrial sector geared mostly to small domestic market.
Industries included meat processing, wool and hides,
sugar,
textiles, footwear, leather apparel, tires, cement,
fishing,
petroleum refining, and wine making. Industrial production
growth
rate in 1988 about -2.9 percent.
Mining and Energy: Exports granite and marble.
Semiprecious stones also have been found in quantity.
Primary
sources of energy hydroelectricity and imported petroleum
(mostly
crude oil).
Services: Accounted for 42 percent of GDP in
1988,
including 6 percent for transportation, storage, and
communications and 15 percent for banking and commerce.
Currency and Exchange Rate: Uruguayan new peso.
In 1990
average exchange rate was US$1=N$Ur1,171. On December 31,
1990,
buying and selling interbank rates were N$Ur1,573 and
N$Ur1,594,
respectively, per US$1. On March 2, 1992, average exchange
rate
was US$1=N$Ur2,674.
Trade: Exports wool, meat, hides, manufactured
goods,
and rice (total about US$1.6 billion in 1989). Imports
fuels and
lubricants, metals, machinery, transportation equipment,
and
industrial chemicals (total about US$1.1 billion in 1989).
Main
export markets and sources of imports Brazil, Argentina,
United
States, and European Community.
Balance of Payments: Trade balance positive and
steadily improving during most of 1980s. Current account
balance
negative until mid-1980s, owing to burden of debt service
(reduced from US$613 million in 1988 to US$449 million in
1989).
Foreign debt to United States in 1989 about US$6.2 billion
of
total US$6.7 billion foreign debt (one of developing
world's
highest per capita). Capital account balance positive for
most of
1980s.
Fiscal Year: Calendar year.
Fiscal Policy: Stabilization plan of Julio Marķa
Sanguinetti (president, 1985-90)--designed to reduce
deficit and
inflation and improve balance of payments--had mixed
results.
Public-sector deficit declined, but inflation continued
unabated,
reaching at least 85 percent by 1989, owing to monetary
and
exchange rate policies. Luis Alberto Lacalle de Herrera
(president, 1990-) attempted to further cut fiscal deficit
and
tighten monetary policy by introducing new taxes on wages
and
increasing value-added tax
(
VAT--see Glossary) rate,
gasoline
prices, and public-sector tariffs. Nevertheless, inflation
rose
to 129 percent in 1990 but then dropped to 106 percent in
1991.
Data as of December 1990
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