The Economic Activity of Uruguay
Agriculture contributes as much as 9% in Uruguay’s gross domestic product. This includes cattle ranching; beef, including milk and dairy products and wool accounted for more than a third of its exports in 2006. The country also produces and exports rice to other countries.
In the area of tourism, the country has quite a number of seaside resorts including Punta del Este and Punta del Diablo in which the latter is known as the South America’s jet set resort. Every year from October to March, international ocean cruises make port calls at the harbor of the capital city, Montevideo.
In information technology, Uruguay can boast of its well educated work force that can accept lower wages below international standards. This has made it possible for the country to become one of Latin America’s fastest growing outsourcing hubs despite a population of only three million. India which is the currently the world’s biggest outsourcing hub regularly outsources jobs to Montevideo’s engineers. A company from Uruguay called ArTech released GeneXus software in September 2009 and sold at least 50,000 licenses worldwide.
Uruguay was once known as the “Switzerland of the Americas” because it’s the home to a considerable number of banks including the state owned Banco Republica or BROU which is the nation’s biggest and 20 branches each owned by many private international institutions like ABN AMRO and Citibank.
Most of the country’s utilities companies are state owned including electricity, water and sewage, railways and telecommunications. There are proponents moving for the privatization of such companies but based on the number of referendums held, many are against it.