Economy Overview

          Uruguay's economy is export-oriented, which means it focuses on selling goods to other countries. It has the highest GNP in South America. The main products they export are wool and beef, which make up about 40% of their export income. One reason their trade is so successful is that they work with some of the biggest importers, like China, Argentina, and Brazil. Most of the country’s land is occupied by people and animals, leaving little space for crops like rice, wheat, corn, and oranges. Since a big part of their GDP comes from livestock, which is mostly owned by the government, they have to spend a lot of resources on processing materials for the livestock industry. The demand from Brazil and Argentina has gone up and down since 1999, making trade sometimes unstable. The national currency is the Uruguayan peso. In the past, it was one of the least stable currencies, but now it has become more stable. There are many industries that help manage the economy, including Economy and Finance, Agriculture, Fishing, Industries, Energy, and Mining. Over the years, Uruguay built up a lot of debt, but in 2003, they restructured it without asking creditors to take a loss, which helped their economy. Uruguay’s economy depends heavily on agriculture and livestock. Trade with other countries plays a huge role in how they make money. Although there are challenges, their strong partnerships and industries help keep the economy running.