Economic Overview

For the latest updates on the key economic responses from governments to address the economic impact of the COVID-19 pandemic, please consult the IMF's policy tracking platform Policy Responses to COVID-19.

The Uruguayan economy is significantly dependent on its neighbours, Brazil and Argentina. In 2021, GDP increased by an estimated 3.1%, mainly due to a rise in household spending and fixed investment, and well as an increase in exports of goods and services paired with a decrease of imports of goods and services. However, it should be noted that the pandemic had relatively little impact on the Uruguayan economy when compared to other countries in the region, which is why the country experienced a more modest economic recovery than its neighbours in 2021. Still, the economy is expected to recover in the coming years, with the IMF predicting growth of 3.2% for 2022 and 2.7% for 2023.

In 2021, inflation remained slightly above the target of 7%, reaching an estimated 7.5%. However, that rate should decrease in 2022 and 2023, to 6.1% and 5.4%, respectively. Public debt is at 67.5% of GDP, but it's expected to increase to 68.8% in 2022 and 70% in 2023. The fiscal deficit slightly decreased to 3.7% in 2021, and it should continue that downward trend in the coming years, reaching 3.2% in 2022 and 2.5% in 2023. Furthermore, the current account went into an estimated 1.3% deficit in 2021, but that rate is expected to decrease to 0.3% in 2022 and remain stable at 0.2% in 2023. The economy has diversified in the past few years with the development of the industry sector (particularly the paper industry), as well as commerce and services. The government's fiscal policies are focused on restoring business profitability as a way to encourage investment and foster economic growth. Its priorities include reducing the large fiscal deficit  through a programme involving austerity and rationalisation of public spending (particularly through a better management of state-owned companies), while maintaining benefits for the most vulnerable sectors. Other key elements are the commitment to open trade, the reform of labour relations, and regulatory and management changes in public enterprises. In 2021, the government continued implementing measures to counteract the economic crisis resulting from the pandemic, which included  the expansion of heath spending, relaxation of rules for claiming unemployment insurance, expanded assistance to the most vulnerable groups, and reduction of some tax and pension obligations. Overall, Uruguay's fiscal measures implemented to mitigate the impacts of the pandemic have been effective in boosting economic activity, which has been gradually recovering. Looking ahead, recovery should continue, albeit at a slower pace, due to the fading impact of a low base effect, tighter monetary policy and heightened inflationary pressures.



Uruguay has one of the highest levels of GDP per capita in South America and a developing middle class. The country has had strong political and social stability for years, backed by a consolidated democracy and strong legal security, which makes it attractive to investors. Furthermore, the population living below the poverty line has decreased significantly in the past decade, from 40% in 2004 to 6.2% in 2016, due to a solid social contract and economic openness. However, there is still room for improvement in terms of financial transparency. The unemployment rate remained stable at 10.4% in 2021, as the country recovered from the impacts of the pandemic. However, unemployment is expected to decrease in the coming years, reaching 9.2% in 2022 and 8.7% in 2023.

Foreign Trade

Uruguay has an open economy and foreign trade represents 46.4% of the GDP. The country mainly exports meat (18.5%), soya beans (11%), wood (9.9%), milk and cream (6.8%), and rice (6.7%). The main imports include petroleum oils (9%), electrical apparatus for line telephony (3.3%), motor vehicles (3.3%), insecticides (2.1%), and medicaments (2%). According to IMF Foreign Trade Forecasts, the volume of exports of goods and services decreased by 16.2% in 2020, while the volume of imports of goods and services decreased by 10.8%. The unprecedented fall in volume of imports and exports in 2020 was due to the global economic crisis following the outbreak of the COVID-19 pandemic.

Uruguay's main trade partners are China, Brazil, Argentina, the United States, Algeria, and Angola. The Uruguayan economy is based on industry, trade and banking services (in the capital Montevideo), as well as agriculture, livestock farming (in the centre of the country) and tourism (in the East). Uruguay is a founding member of MERCOSUR, upon which it strongly depends. The country is also a member of ALADI, a trade association that includes ten South American countries as well as Cuba, Mexico, and Panama. Under ALADI’s Economic Complementation Agreements, Uruguay enjoys and grants special preferential access to trade with Bolivia, Chile, Colombia, Cuba, Ecuador, Mexico, Peru, and Venezuela. Additionally, trade relations with Argentina and Brazil are extremely important, as those countries account for over half of Uruguay’s exports and imports, combined.

As Uruguay mainly exports agricultural products, they are highly vulnerable to international price fluctuations. In 2020, their exports of goods amounted to USD 6.8 million, while imports totalled USD 7.5 million. As for services, imports equalled USD 3.42 million, while exports reached USD 3.49 billion. As a result, the country had a trade surplus in terms of goods of USD 2.1 million and a trade surplus including services of USD 2.2 million.

COVID-19 Country Response

COVID-19 epidemic evolution

To find out about the latest status of the COVID19 pandemic evolution and the most up-to-date statistics on the COVID19 disease in Uruguay, please visit the Uruguayan government platform with the official data. Official information on the progress of the epidemic in Uruguay is consolidated by the Ministry of Health. The ministry provides a daily epidemiological update, which includes key national figures.

For the international outlook you can consult the latest situation reports published by the World Health Organisation as well as the global daily statistics on the coronavirus pandemic evolution including data on confirmed cases and deaths by country.

Sanitary measures

To find out about the latest public health situation in Uruguay and the current sanitary measures in vigour, please consult the Uruguayan government platform on COVID-19 including the up-to-date information on the containment measures put in place and public health recommendations.

Travel restrictions

The COVID-19 situation, including the spread of new variants, evolves rapidly and differs from country to country. All travelers need to pay close attention to the conditions at their destination before traveling. Regularly updated information for all countries with regards to Covid-19 related travel restrictions in place including entry regulations, flight bans, test requirements and quarantine is available on TravelDoc Infopage.
It is also highly recommended to consult COVID-19 Travel Regulations Map provided and updated on the daily basis by IATA.
The US government website of Centers of Disease Control and Prevention provides COVID-19 Travel Recommendations by Destination.
The UK Foreign travel advice also provides travelling abroad advice for all countries, including the latest information on coronavirus, safety and security, entry requirements and travel warnings.

Import & export restrictions

For the information on all the measures applicable to movement of goods during the period of sanitary emergency due to the COVID-19 outbreak (including eventual restrictions on imports and exports, if applicable), please consult the portal of the Uruguayan National Customs Directorate.

For a general overview of trade restrictions due to COVID-19 pandemic, please consult the section dedicated to Uruguay on the International Trade Centre's COVID-19 Temporary Trade Measures webpage.

Economic recovery plan

For the information on the economic recovery scheme put in place by the Uruguayan government to address the impact of the COVID19 pandemic on the Uruguayan economy, please visit the website of the Uruguayan Ministry of the Economy. The information on the Uruguayan economic emergency plan is available here.

For the general overview of the key economic policy responses to the COVID-19 outbreak (fiscal, monetary and  macroeconomic) taken by the French government to limit the socio-economic impact of the COVID-19 pandemic,  please consult the section dedicated to France in the IMF’s Policy Tracker platform.

Support plan for businesses

For the information on the local business support scheme established by the Uruguayan government to help small and  medium-sized companies to deal with the economic impacts of the COVID19 epidemic on their activity, please consult  the portal of the National Development Agency.

For a general overview of international SME support policy responses to the COVID-19 outbreak refer to the World Bank's Map of SME-Support Measures in Response to COVID-19.

Support plan for exporters

To find out about the support plan for exporters put in place by the Uruguayan government, please consult the support plan for Uruguayan exporting companies available on the Uruguayan Agency for the Promotion of Investments, Exports and Country Image website.