equal horizontal stripes of white (top and bottom) alternating
with blue; there is a white square in the upper hoist-side corner
with a yellow sun bearing a human face known as the Sun of May and
16 rays alternately triangular and wavy

Economy Uruguay

Economy - overview:
Uruguay's well-to-do economy is characterized by an export-oriented
agricultural sector, a well-educated workforce, and high levels of
social spending. After averaging growth of 5% annually during
1996-98, in 1999-2002 the economy suffered a major downturn,
stemming largely from the spillover effects of the economic problems
of its large neighbors, Argentina and Brazil. For instance, in
2001-02 massive withdrawals by Argentina of dollars deposited in
Uruguayan banks led to a plunge in the Uruguyan peso and a massive
rise in unemployment. Total GDP in these four years dropped by
nearly 20%, with 2002 the worst year due to the serious banking
crisis. Unemployment rose to nearly 20% in 2002, inflation surged,
and the burden of external debt doubled. Cooperation with the IMF
and the US has limited the damage. The debt swap with private
creditors carried out in 2003, which extended the maturity dates on
nearly half of Uruguay's $11.3 billion in public debt, substantially
alleviated the country's amortization burden in the coming years and
restored public confidence. The economy is expected to resume growth
in 2004 (perhaps 4% or more) as a result of high commodity prices
for Uruguayan exports, the weakness of the dollar against the euro,
growth in the region, low international interest rates, and greater
export competitiveness. On the negative side, in December 2003 the
electorate voted to repeal the law permitting a cautious
liberalization of the energy industry.

GDP:
purchasing power parity - $43.67 billion (2003 est.)

GDP - real growth rate:
2.5% (2003 est.)

GDP - per capita:
purchasing power parity - $12,800 (2003 est.)

GDP - composition by sector:
agriculture: 7.4%
industry: 26.6%
services: 66% (2003)

Investment (gross fixed):
9.7% of GDP (2003)

Population below poverty line:
23.7% (2002)

Household income or consumption by percentage share:
lowest 10%: 3.7%
highest 10%: 25.8% (1997)

Distribution of family income - Gini index:
44.8 (1999)

Inflation rate (consumer prices):
19.4% (2003 est.)

Labor force:
1.56 million (2003)

Labor force