2. 2 | Uruguay at a glance
Country Profile Uruguay is the most peaceful country of Latin
America according to 2011 Global Peace Index
Uruguay is a country which offers a high level of drawn up by the Institute for Economics and
security and welfare to live. Weather is pleasant Peace (IEP). In the list of 153 nations, Uruguay
all year long, summer being the ideal season for is ranked 21st and in the region is followed by
tourism. It is strategically situated as Paraná, Costa Rica, ranked in the 31st position.
Río de la Plata and Uruguay rivers run into
the Atlantic Ocean, offering great competitive
advantages. Economy
For years the country has kept a strong political Uruguayan economy grew 8.5% in 2010,
and social stability, supported by a consolidated consolidating the seventh consecutive growth
democracy and strong legal certainty. year. The average growth rate over the last
seven years is 6.3%. GDP per capita almost
Nowadays, the political system has three major doubled in the last six years and in 2010 it
parties which have taken turns in office, always reached levels close to US$ 12,000.
keeping a strong respect for the rules of game
and the essential grounds of economic activity. Inflation in 2010 reached 6.93%, practically in
Its legal system is based on legal rules approved the upper limit of the target range established
by the Parliament and passed by the Executive by BCU (3%-7%). Since June 2011, target range
Branch, there being special judges for different is 4%-6%. It is worth mentioning that BCU’s
matters. purpose is to control inflation, for which it uses
the Monetary Policy Rate (MPR) as instrument
3. Uruguay at a glance | 3
thereof. Socio-Economic aspects
Gross Fixed Capital Formation increased Uruguay is the highest rated country in Latin
more than two percentage points over the America on the 2011 Legatum Prosperity Index
last years. This is explained not only by the which assesses the economy situation and
internal investment increase but also by the quality of life and is ranked No. 28 among the
strong foreign investment flow. Direct foreign 101 nations assessed by this ranking. Such
investment (DFI) has quadrupled over the last index takes into account economic indexes
seven years. and assesses quality of life, health, population
satisfaction and entrepreneurship development
The external sector reported great dynamism indexes.
over the last years. Exports of goods and
services increased fourfold over the last seven The country is characterized by a long tradition
years, while imports grew as well. of respect for citizens’ rights and is part of
the list of countries with the highest levels of
equal opportunities for Latin American children,
according to the Human Opportunity Index (HOI)
drawn up by the World Bank. Uruguay is ranked
as the second highest overall HOI in the region
in 2010 behind Chile.
Primary education is secular, free, compulsory
and publicly funded. Population has access
to free education from the first level of
kindergarten (Early Education) until graduation
from University, thus obtaining minimum
illiteracy levels.
Uruguay has been the first country to develop
a social and digital inclusion plan called “Plan
Ceibal” which involves the free delivery of one
laptop per child and teacher in state elementary
education and first level of secondary education
throughout the country. This way, it is intended
to promote digital inclusion in order to decrease
the digital gap, both regarding other countries
and among Uruguayan citizens, so that larger
and better access to education and culture can
be obtained.
5. Uruguay at a glance | 5
Investment promotion and protection
Uruguay has an attractive investment promotion
system – Law 16,906 on Investment Promotion
and Protection – and from 2008 there is an
exclusive investor assistance center and an
automatic, modern, transparent and efficient
mechanism which benefits more companies
and sets forth objective criteria for granting tax
exemptions.
There is no discrimination in the treatment restrictions for the purchase or sale of foreign
of national and foreign capital, whereby all exchange and investments may be made in any
investors, regardless of their origin, can have currency.
access to the benefits granted by the Investment
Promotion Law and there are no limits to the In Uruguay there are international standards
transfer of benefits or repatriation of capitals regarding adherence to intellectual property.
so no prior permits from the authorities are Copyright, trademarks and patents are
required. The exchange market is free, with no specifically protected by Uruguayan laws.
According to The Global Competitiveness Report
(2011), Uruguay is the second country in Latin
America to deeply protect intellectual property.
Logistics, infrastructure and communications
Localization and infrastructure in Uruguay are fit
for concentrating and distributing merchandise
to the wealthiest region of South America. It
has deep ports, unique in South America,
operating under the Free Port system and
first-class port infrastructure in Montevideo,
6. 6 | Uruguay at a glance
it being a regional hub par excellence for the country in South America regarding its roads’
South American Cone. Uruguay is considered quality (source: The Global Competitiveness
the second country in South America regarding Report 2010-2011, World Economic Forum).
infrastructure development (source: The Global
Competitiveness Report 2010-2011, World Uruguay has wide coverage telecommunication
Economic Forum). services through the national territory. It has
the largest cell phone teledensity rate in Latin
Moreover, the country has a new modern airport, America: 132 lines every 100 inhabitants.
a new belt highway in Montevideo and a road
expansion to Colonia and a new ferry port in
Colonia, thus achieving an appropriate support
infrastructure for passenger and merchandise
transportation by land and air.
The road network is the heaviest in Latin
America (45 km of paved roads every 1,000 Km2
of surface). Uruguay is considered the second
