Uruguay profile

Demography and Health

Uruguay, a small but highly urbanized country in South America, had an estimated population of 3,386,588 in 2024. It benefits from demographic and health indicators that support social stability and human development: life expectancy at birth reached 78.1 years in 2023, and the crude birth rate stood at 9.87 per 1,000 people while the crude death rate was 9.78 per 1,000 in 2023, signaling a relatively balanced demographic structure with gradual aging rather than rapid population growth or decline. The labor market shows a moderate unemployment rate of 8.36% in 2023, placing Uruguay in a comparatively favorable position within the region, though it still reflects underlying pressures for job creation and productivity improvements. Public health expenditure is substantial, with current health expenditure at 8.95% of GDP in 2022 and domestic general government health expenditure per capita, PPP, of 1,815 international dollars in 2022, indicating strong public commitment to health access and quality. The health system is supported by a physician density of 4.63 per 1,000 people (2022) and a hospital bed density of 2.48 per 1,000 people (2021), suggesting a well-distributed foundation for clinical care and preventative services. Nevertheless, certain health challenges persist: under-5 mortality at 6.7 per 1,000 live births in 2023 remains a critical metric to monitor, while the suicide mortality rate at 24.8 per 100,000 people (2021) points to the ongoing importance of mental health and social support systems. Population dynamics are further shaped by net migration, which was negative in 2024 at approximately -1,348 people, contributing to a relatively stable headcount but implying potential implications for age structure and talent retention. Nutritional adequacy appears solid, with undernourishment at 2.5% of the population in 2022, and poverty at about 10.1% in 2023, reflecting success in social protection coupled with pockets of vulnerability. The digital dimension is strong, with 89.9% of the population using the Internet in 2023, supporting access to health information, telemedicine, and health education. Overall, Uruguay’s demography and health profile blends high human development, solid health infrastructure, and social protections, but also highlights priorities in mental health, child health, and inclusive labor market strategies as the country ages and urbanizes further.

Economy

Uruguay’s economy in 2024 exhibits a high standard of living relative to regional peers and an economy oriented toward openness and services. Gross domestic product per capita stands at 23,907 current US$ and 36,418 (PPP, current international US$) in 2024, reflecting a relatively affluent, albeit small, economy with strong earnings potential for residents. The country maintains an open external orientation: exports of goods and services accounted for 28.8% of GDP in 2024, while imports represented 23.7% of GDP, signaling a degree of trade openness that supports domestic consumption and investment. Inflation sits at about 4.85% in 2024, indicating a relatively stable price environment for households and firms by regional standards. The current account balance is modestly negative at -1.01% of GDP in 2024, suggesting a manageable current account position that can be financed through moderate capital flows. Foreign direct investment net inflows are negative (-3.14% of GDP in 2024), pointing to challenges in attracting fresh investment or possibly reflecting portfolio reallocation and reinvestment patterns; this underscores an area for policy attention to enhance investment climate, certainty, and incentives for productive capital formation. Unemployment is 8.36% in 2023, implying ongoing labor-market pressures that could be addressed through productivity growth, skills development, and targeted employment programs. The economy benefits from a strong social and human-development context—poverty at 10.1% and a high share of adults with access to digital tools—supporting consumption and resilience. The energy and technology landscape also features a fertile environment for knowledge-based activity, with high-tech exports of 188.5 million USD in 2023 and a research and development expenditure of 0.626% of GDP in 2022, indicating a modest but meaningful commitment to innovation that complements a services-led growth model. In sum, Uruguay’s economy blends affluence with openness, stable macro fundamentals, and a need to attract more stable investment to sustain longer-term growth and productivity gains.

Trade and Investment

Uruguay’s trade and investment dynamics reveal a small, highly open economy with a clear export orientation and a developing knowledge-based economy. Exports of goods and services amounted to 28.8% of GDP in 2024, indicating a significant role for external demand in supporting growth and employment. Imports accounted for 23.7% of GDP in the same year, reflecting a reliance on foreign inputs for domestic consumption and production, which is typical for a modern small economy. The logistics environment, measured by the Logistics Performance Index at 2.7 (2022) with a rank of 19, points to relatively efficient trade-related infrastructure for a country of Uruguay’s size, facilitating supply chains and cross-border transactions. High-technology exports reached 188.5 million USD in 2023, signaling Uruguay’s emergence in knowledge-intensive sectors even though the absolute numbers are modest on a global scale. The country’s foreign direct investment net inflows are negative (-3.14% of GDP in 2024), which could reflect portfolio reallocations, global investment cycles, or policy signaling; addressing the investment climate—predictability, regulatory certainty, and targeted incentives—would help attract new capital for productive sectors and infrastructure. The balance of payments landscape shows a modest current account deficit of -1.01% of GDP (2024), consistent with a measured reliance on external capital while maintaining macro stability. Taken together, Uruguay’s trade and investment profile underscores a successful openness strategy, complemented by improving but still-needed reforms to attract durable investment, expand export sophistication, and strengthen supply chains for higher-value sectors.

Governance and Institutions

Uruguay’s governance and institutional framework exhibits a blend of political stability, robust anti-corruption credentials, and opportunities for policy enhancement. Political stability and absence of violence/terrorism score 0.965 in 2023, with a rank of 31 among peers, signaling a consistently peaceful political environment that underpins predictable policymaking and social cohesion. Control of corruption is relatively strong at 1.57 (rank 17), suggesting credible governance and effective checks on illicit influence, which supports investor confidence and public trust. Government effectiveness is 0.85 (rank 39), indicating a capable public sector capable of delivering essential services and implementing policies. Regulatory quality sits at 0.675 (rank 48), indicating room for improvement in policy formulation and implementation, yet not a systemic weakness given other governance strengths. Rule of law is 0.718 (rank 46), reinforcing confidence in legal frameworks, contract enforcement, and judicial independence. The poverty rate at 10.1% (2023) points to remaining disparities that social policy must address, even as broader governance enables inclusive growth. Overall, Uruguay’s governance profile blends strong stability, credible public institutions, and a social contract that prioritizes safety nets and rule-based policy, while leaving some headroom for regulatory strengthening and policy modernization to meet emerging challenges and opportunities in a changing global environment.

Infrastructure and Technology

Uruguay’s infrastructure and technology landscape reflects a modern, service-oriented economy embedded in regional networks and digital transformation. Internet usage is high, with 89.9% of the population online in 2023, enabling e-government, digital health, and broader financial and educational inclusion. Research and development expenditure stands at 0.626% of GDP in 2022, representing a moderate but purposeful investment in science and innovation that can underpin productivity gains if scaled and targeted toward strategic sectors. The health and education infrastructure is evident in workforce health metrics: physicians per 1,000 people are 4.63 (2022), while hospital beds per 1,000 are 2.48 (2021), indicating a well-developed health system and capacity to respond to public needs. The logistics environment scores well for a small economy: Logistics Performance Index of 2.7 (2022) with a 19th-place ranking suggests effective trade logistics, contributing to competitive export performance. The country also enjoys a decisive move toward renewable energy, with renewable energy accounting for 57.8% of total final energy consumption in 2021, signaling a strong commitment to energy security and climate objectives. However, foreign direct investment net inflows are negative (-3.14% of GDP in 2024), which highlights ongoing vulnerabilities in capital formation and the need to further improve the investment climate, regulatory clarity, and connected infrastructure to attract new capital and accelerate technology-driven growth. In short, Uruguay’s infrastructure and technology portfolio combines high digital connectivity, solid health and education foundations, moderate R&D investment, and a constructive yet improvable investment climate to sustain a dynamic, knowledge-based economy.

Environment and Sustainability

Uruguay’s environmental and sustainability indicators reflect a progressive trajectory toward decarbonization, resource efficiency, and social well-being. Renewable energy accounts for 57.8% of total final energy consumption in 2021, placing Uruguay among the regional leaders in clean energy integration and energy resilience, with implications for both climate goals and electricity affordability. Total greenhouse gas emissions excluding LULUCF per capita are 12.3 t CO2e in 2023, indicating a moderate carbon footprint relative to income levels, shaped by agriculture, transport, and energy choices; ongoing efforts to decarbonize transport and industrial processes will be critical to continue reducing emissions intensity. Water resource stress appears manageable: level of water stress measured as freshwater withdrawal versus available resources is 9.79% in 2021, a relatively low figure that supports agricultural productivity and municipal water security. Food security remains solid, with undernourishment at 2.5% in 2022, complementing a high life expectancy and strong health system. Life expectancy is 78.1 years (2023), reinforcing the positive social outcomes that accompany environmental stewardship. Taken together, Uruguay’s environmental profile combines a robust renewable-energy pathway, prudent resource management, and social indicators that reflect a sustainable development model, while continuing to confront the challenges of climate change, land-use dynamics, and the need to maintain affordable energy and transport systems for a growing economy and changing demographics.