Uruguay

Gross domestic product (GDP) fell by over 3% in 1999 owing to declines in both domestic and external demand and a prolonged drought that cut back agricultural supply. The reversal in the terms of trade caused national income to shrink by 5 % after having posted a 7 % growth rate in 1998. The procyclical nature of the tax regime was one of the factors underlying the expansion of the non-financial public-sector (NFPS) deficit to 3.6% of GDP, while the external current account deficit widened to almost 3% of GDP. This widespread downturn raised unemployment to over 11 % and this, in combination with imported deflation and a slowdown in monetary expansion, held domestic price increases to just 4%, the lowest figure in the last 50 years.

Sustainable Development Goals:

Decent Work and Economic Growth

Industry, Innovation and Infrastructure

Peace, Justice and Strong Institutions