Uruguay Country Commercial Guide
Learn about the market conditions, opportunities, regulations, and business conditions in uruguay, prepared by at U.S. Embassies worldwide by Commerce Department, State Department and other U.S. agencies’ professionals
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Market Overview
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Uruguay became a high-income country by World Bank standards in 2012, one of only three in South America. According to CIA World Factbook, at $31,000, Uruguay has the second highest real GDP per capita in South America, after Guyana. Uruguay has a strong welfare state, with the greatest income distribution (Gini coefficient of 40.6), among the largest per capita middle class (around 60 percent), and the lowest poverty rates in South America. In April 2024, S&P and Moody’s upgraded Uruguay’s credit rating to investment grade BBB+, the highest level in its history. From 2004-2014, the economy grew robustly with 5.4 percent annual growth, led by goods exports and private consumption, and driven by low unemployment, rising wages, and a strong peso. A positive international environment – comprised of high commodity prices, low interest rates, and strong capital inflows – was the cornerstone for robust and sustained growth. Since then, the economy has weathered regional economic downturns, but growth decelerated significantly to 1.3 percent annually from 2015-2019. GDP contracted 6 percent in 2020 following the COVID-19 pandemic but rebounded in 2022 to above pre-pandemic levels, growing 4.7 percent. In 2023, growth slowed due to a severe nation-wide drought with GDP increasing by 0.4 percent. In 2023, unemployment hovered around 8.4 percent, below pre-pandemic levels of 9 percent on average. The economy rebounded and in 2024, posting 3.1 percent growth and Uruguay’s central bank is forecasting 3.5 percent growth in 2025. 

Following national elections in 2024, Uruguay’s center-left political party, the Frente Amplio (FA), returned to power, with Yamandú Orsi assuming the presidency on March 1, 2025. The new administration succeeded the center-right government led by President Luis Lacalle Pou of the Partido Nacional, which governed from 2020 to 2025. This peaceful transfer of power underscores Uruguay’s strong democratic institutions, as the country marked 40 consecutive years of democratic governance.

The top six reasons why U.S. companies should consider doing business in Uruguay:

  • Uruguay is an institutionally stable democratic country with strong rule of law and a commitment to international agreements and norms; Uruguay leads Latin America in political stability and democracy.  
  • Uruguay is extremely well connected, with over 91 percent of the population having access to the internet and 4G/LTE available in 94 percent of the country.
  • Due to its beneficial customs regime with Mercosur and strategic location between Argentina and Brazil, Uruguay serves as a regional distribution platform through its free port and free airport regimes, as well as free trade zones (12 around the country, with two more under construction).
  • Uruguay can function as a test market for those international companies with little-to-no previous experience in the region.
  • The U.S.-Uruguay bilateral relationship is strong, and Uruguay’s government and business sectors have a favorable view of American businesses.
  • Foreign investment has been declared a national priority, offering a wide range of tax exemptions for investments. Two examples of these exemptions are the previously mentioned Free Trade Zones, and the Investment Promotion Law, which grants foreign investors income tax exemptions for up to 10 years, depending on the project size.
    Economic Trends
     

In 2024, two-way trade of goods between Uruguay and the United States reached $2.9 billion according to U.S. Trade Representative (USTR) statistics. The United States is the largest buyer of IT services from Uruguay, accounting for 82 percent of the country’s IT exports in 2023 – about $1.7 billion. 

According to Uruguay’s investment and trade promotion agency (Uruguay XXI), when only considering goods, Uruguay’s top 2024 export destinations in descending order were China (24 percent), Brazil (18 percent), EU (14 percent) and the United States (9 percent). China remains the main destination of Uruguay’s goods exports, a position which they have held since 2013. In 2024, the United States ranked third among individual countries as a destination for Uruguayan goods, and fourth when considering the EU as a bloc, totaling $1.15 billion dollars.

Uruguay’s economic base is its agricultural sector, exporting products such as cellulose, soy, meat, grains, dairy, wood, pharmaceuticals, and services. More than 80 percent of Uruguay’s total goods exports are agricultural-based products, with its agricultural-based exports going to more than 160 countries and representing nearly ten times its 3.5-million-person population’s agricultural needs. In 2024, cellulose became Uruguay’s top export product for the first time, accounting for 20 percent of total goods exports with a value of $2.54 billion, surpassing beef. This shift was driven by both an increase in cellulose prices and higher export volumes, boosted by the operations of the UPM Paso de los Toros plant. At the same time, beef, Uruguay’s second largest export at $2 billion in 2024, saw a slight decline, as rising prices were not enough to offset a drop in export volumes. Soybean ranked third among products at 9 percent, with exports totaling $1.2 billion in 2024.

In 2024, Uruguay imported a total of $10.875 billion dollars in goods (excluding petroleum), which implies a 2.2 percent year-on-year. In 2024, China and Brazil were the main sources of Uruguay’s imports, each representing 25 percent of total imports. The EU came in third at 13 percent and Argentina in fourth, with 12 percent. Goods from the United States represented 9 percent of total Uruguayan imports. Processed industrial supplies were the top import item, making up 29 percent of total imports. Imports of machinery and equipment totaled $1.28 billion (12 percent of total imports), led by construction vehicles and tractors (growing 12 percent), mainly from China. Food and beverage imports rose to $1.11 billion, with beef and veal imports up 17 percent to $159 million.

Uruguay is an attractive market for international companies and Uruguay is a target for foreign direct investment (FDI) given investor confidence in the country’s institutional framework and economic policies. In 2023 the United States had the fifth largest capital stock of FDI (excluding intra-company loans) with 6 percent of the total, reflecting its longstanding presence in the country. About 230 U.S companies employ over 25,000 Uruguayans. For more information on FDI into Uruguay, please see the Investment Climate Statement section of this document.

While service trade figures are not officially tracked, Uruguay XXI claims that service exports represent an increasingly significant share of Uruguay’s export basket. In the 12-month period ending in September 2024, total service exports reached $6.95 billion – nearly 30 percent of total exports – according to data from the Central Bank of Uruguay. Non-traditional services accounted for the largest share, totaling $3.975 billion.

Within global services, professional and consulting services were the leading category, reaching $1.76 billion and accounting for 48 percent of global service exports. Information technology services followed, with exports totaling $1.13 billion, representing 31 percent of the global services segment. Other notable exports included financial services, personal, cultural and recreational services, intellectual property services, as well as technical and other business services. Telecommunications services were the only category to show a decline.

For more information on FDI into Uruguay, please see the Investment Climate Statement website 

Political Environment 

Visit the State Department’s website for background on the country’s political and economic environment.