Uruguay’s economy has bounced back from the 2002 recession, and it is still a relatively prosperous country, with GDP per capita at US$6,477 (2007). It does not share its neighbors’ problems of unemployment, inequality, poverty and slums.
With a population of 3.5 million, it is known for its progress in education, its advanced welfare system and its liberal laws on social issues such as divorce. It has an excellent climate, good communications, fine ports, high agricultural and cattle productivity, and an experienced service industry.
Uruguay was among the first Latin America countries to establish a welfare state system and has maintained this, together with one of the region’s lowest poverty rates, through relatively high taxes on industry. Good access to health care contributes to a high average life expectancy.
However, there is a downside. Large swathes of Uruguay’s economy are in the hands of the state, including telecoms, most of the electricity industry, oil imports and several banks. Though economic performance is reasonable, the country could do much better, and it suffers from relatively high emigration.
Uruguay’s colonial towns, sandy beaches and year-round mild climate have created an increasingly important tourist industry. However, Uruguay's dependence on livestock and related exports make it vulnerable to fluctuations in international commodity prices. Recessions in Brazil and Argentina - its main export markets and source of tourists - propelled Uruguay into economic crisis in 2002.
Disbursements from the International Monetary Fund (IMF) and a restructuring of foreign debt have helped to foster a fragile recovery.
In November 2004 Tabaré Vázquez from the leftist Broad Front coalition won the presidential elections. Vázquez immediately approved at US$100 million emergency plan to help the poor, and opened investigations into the disappearances under military rule in the 1970s and 1980s. He also restored ties with Cuba.
This is a significant shift from the centrist presidency of Jorge Battle (1999-2004), who had pushed some significant reforms.
Yet Vázquez’s finance secretary Danilo Astori is a moderate, who has pursued tight fiscal policies, and also spearheaded the reform of the taxation system, including the introduction of a 12% tax on rental income. It seems likely that Astori will be the Broad Front’s candidate in the 2009 presidential election.
Uruguay is part of Mercosur (Mercado Común del Sur), the commercial and political agreement with Argentina, Brazil, and Paraguay, which provides a potential market of 200 million people. But it may be more of a handicap than a benefit, as it condemns the country to paying high import duties on imported machinery.
http://www.globalpropertyguide.com/Latin-America/Uruguay
With a population of 3.5 million, it is known for its progress in education, its advanced welfare system and its liberal laws on social issues such as divorce. It has an excellent climate, good communications, fine ports, high agricultural and cattle productivity, and an experienced service industry.
Uruguay was among the first Latin America countries to establish a welfare state system and has maintained this, together with one of the region’s lowest poverty rates, through relatively high taxes on industry. Good access to health care contributes to a high average life expectancy.
However, there is a downside. Large swathes of Uruguay’s economy are in the hands of the state, including telecoms, most of the electricity industry, oil imports and several banks. Though economic performance is reasonable, the country could do much better, and it suffers from relatively high emigration.
Uruguay’s colonial towns, sandy beaches and year-round mild climate have created an increasingly important tourist industry. However, Uruguay's dependence on livestock and related exports make it vulnerable to fluctuations in international commodity prices. Recessions in Brazil and Argentina - its main export markets and source of tourists - propelled Uruguay into economic crisis in 2002.
Disbursements from the International Monetary Fund (IMF) and a restructuring of foreign debt have helped to foster a fragile recovery.
In November 2004 Tabaré Vázquez from the leftist Broad Front coalition won the presidential elections. Vázquez immediately approved at US$100 million emergency plan to help the poor, and opened investigations into the disappearances under military rule in the 1970s and 1980s. He also restored ties with Cuba.
This is a significant shift from the centrist presidency of Jorge Battle (1999-2004), who had pushed some significant reforms.
Yet Vázquez’s finance secretary Danilo Astori is a moderate, who has pursued tight fiscal policies, and also spearheaded the reform of the taxation system, including the introduction of a 12% tax on rental income. It seems likely that Astori will be the Broad Front’s candidate in the 2009 presidential election.
Uruguay is part of Mercosur (Mercado Común del Sur), the commercial and political agreement with Argentina, Brazil, and Paraguay, which provides a potential market of 200 million people. But it may be more of a handicap than a benefit, as it condemns the country to paying high import duties on imported machinery.
http://www.globalpropertyguide.com/Latin-America/Uruguay
1 comment:
Alberta is one of four provinces/territories in Canada that doesn't collect a provincial sales tax.
Tax Specialist in London
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