About Uruguay

Uruguay Population: 3,399,237 (July 2004 est.)
Languages: Spanish, Portunol, or Brazilero (Portuguese-Spanish mix on the Brazilian frontier)
Capital: Montevideo
Government Type: Constitutional Republic
Independence Day: 25 August 1825 (from Brazil)
Legal System: Based on Spanish civil law system; accepts compulsory ICJ jurisdiction.
Currency: Uruguayan peso (UYU)

Executive Branch:

Chief of State: President Jorge BATLLE Ibanez (since 1 March 2000) and Vice President Luis HIERRO (since 1 March 2000); note - the president is both the chief of state and head of government.

Head of Government: President Jorge BATLLE Ibanez (since 1 March 2000) and Vice President Luis HIERRO (since 1 March 2000); note - the president is both the chief of state and head of government.

American Embassy: Lauro Muller 1776, Montevideo 11200
Mailing Address: APO AA 34035
Telephone: [598] (2) 418-7777 FAX: [598] (2) 418-8611

Economic 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.

International Disputes: Uncontested dispute with Brazil over certain islands in the Quarai/Cuareim and Invernada streams and the resulting tripoint with Argentina.