Nation at a Glance - Uruguay

History

Montevideo, founded by the Spanish in 1726 as a military stronghold, soon took advantage of its natural harbor to become an important commercial center. Claimed by Argentina but annexed by Brazil in 1821, Uruguay declared its independence four years later and secured its freedom in 1828 after a three-year struggle. The administrations of President Jose BATLLE in the early 20th century launched widespread political, social, and economic reforms that established a statist tradition. A violent Marxist urban guerrilla movement named the Tupamaros, launched in the late 1960s, led Uruguay's president to cede control of the government to the military in 1973. By yearend, the rebels had been crushed, but the military continued to expand its hold over the government. Civilian rule was not restored until 1985. In 2004, the left-of-center Frente Amplio Coalition won national elections that effectively ended 170 years of political control previously held by the Colorado and Blanco parties. Uruguay's political and labor conditions are among the freest on the continent.

Location: Southern South America, bordering the South Atlantic Ocean, between Argentina and Brazil

Border Countries: Argentina 541 km, Brazil 1,050 km

Total Area: 176,215 sq km Land: 175,015 sq km Water: 1,200 sq km

Climate: Warm temperate; freezing temperatures almost unknown

Terrain: Mostly rolling plains and low hills; fertile coastal lowland

Natural resources: Arable land, hydropower, minor minerals, fish

Land use: Agricultural land: 87.2% arable land 10.1%; permanent crops 0.2%; permanent pasture 76.9% Forest: 10.2% Other: 2.6% (2011 est.)

Ethnic groups: White 88%, Mestizo 8%, Black 4%, Amerindian (practically nonexistent)

Languages: Spanish (official), Portunol, Brazilero (Portuguese-Spanish mix on the Brazilian frontier)

Religions: Roman Catholic 47.1%, non-Catholic Christians 11.1%, Nondenominational 23.2%, Jewish 0.3%, Atheist or agnostic 17.2%, Other 1.1% (2006)

Population: 3,351,016 (July 2016 est.)

Literacy: 98.5%; Male: 98.2%; Female: 98.8% (2015 est.)

Administrative divisions: 19 departments (departamentos, singular - departamento); Artigas, Canelones, Cerro Largo, Colonia, Durazno, Flores, Florida, Lavalleja, Maldonado, Montevideo, Paysandu, Rio Negro, Rivera, Rocha, Salto, San Jose, Soriano, Tacuarembo, Treinta y Tres

Economy: Uruguay has a free market economy characterized by an export-oriented agricultural sector, a well-educated workforce, and high levels of social spending. Uruguay has sought to expand trade within the Common Market of the South (Mercosur) and with non-Mercosur members, and President VAZQUEZ has maintained his predecessor’s mix of pro-market policies and a strong social safety net. Following financial difficulties in the late 1990s and early 2000s, Uruguay's economic growth averaged 8% annually during the period 2004-08. The 2008-09 global financial crisis put a brake on Uruguay's vigorous growth, which decelerated to 2.6% in 2009. Nevertheless, the country managed to avoid a recession and keep positive growth rates, mainly through higher public expenditure and investment; GDP growth reached 8.9% in 2010 but slowed markedly in the period 2012-16 as a result of a renewed slowdown in the global economy and in Uruguay's main trade partners and Mercosur counterparts, Argentina and Brazil. Reforms in those countries should give Uruguay an economic boost. Growth picked up in 2017.

Agriculture - products: Soybeans, rice, wheat; beef, dairy products; fish; lumber, cellulose

Industries: Food processing, electrical machinery, transportation equipment, petroleum products, textiles, chemicals, beverages