Uruguay is part of the Southern Cone and a member of Mercosur, the Southern Common Market. Uruguay has no significant energy production except for some hydroelectric power generation.

GENERAL BACKGROUND
Uruguay is a county of approximately 3.2 million people with nearly one half residing in Montevideo, Uruguay's capital and its only large city. The rest of the urban population is scattered among 20 towns. The country's two main languages are Spanish and Brazilero, a mix of Portuguese and Spanish. Approximately 25% of the population is of Italian origin, and about 66% of the population is Roman Catholic.

In 1973, under considerable economic and political turmoil, the Uruguayan military closed the congress and established a civilian-military regime. After seven years the military drafted a new constitution which was rejected in a national vote in November 1980. Following this rejection of a new constitution, the military announced a plan to return to a civilian government. Elections were held in 1984 and Colorado party leader Julio Maria Sanguinetti won the presidency. He took office in 1985 for a five year term. In order to ease the transition from military rule and to promote national reconciliation, Sanguinetti supported general amnesty for military leaders accused of human rights violations during the military regime. He also introduced economic reforms designed to attract foreign trade and capital in an attempt to stabilize the economy. In 1989, the National Party's Luis Alberto Lacalle de Herrera was elected president. Lacalle introduced privatization efforts as well as major economic and social reform programs designed to reduce inflation and government spending. However, his reforms encountered significant opposition and many programs were overturned by referendum. In the November 1994 elections, former president Sanguinetti won a new term in office which began in March 1995. The 1994 elections failed to produce a majority for either the National Party or the Colorado Party and a coalition government was formed. Working with the Coalition, President Sanguinetti initiated reforms aimed at improving the electoral system, education, social security, and public safety. In addition, he continued to push the basic economic program of former President Lacalle which included lowering tariffs, reducing deficit spending, controlling inflation, and downsizing government. However, the factious political system and the conservative nature of the Uruguayan people have slowed economic and political reforms.

ECONOMY
The Uruguayan economy has functioned fairly well for the last four years. GDP grew 3.0% in 1993 and 6.8% in 1994. In 1995 GDP decreased 2.4% but bounced back in 1996 with a strong 4.9% increase. This increase was accompanied by strong performances by the agricultural sector, the manufacturing sector, the transport sector, and the communications sector. One of the main factors behind Uruguay's improved GDP number was the relatively strong economic performance of Argentina and Brazil during the second half of 1995. Other good signs for 1996 included a fiscal deficit equivalent to 1.95% of GDP down from 2.15% in 1995, a continued commitment to downsizing the public sector, and a 24.4% inflation rate for 1996, the lowest since 1982. Inflation in Uruguay peaked in 1990 at 128.96%. Despite the government's gradual approach to economic reforms, the Uruguayan economy continues on a path towards gradual stability.

ENERGY
In June 1997, the Uruguayan Parliament approved new regulations for its energy sector liberating the generation and commercialization of electricity. However, Uruguay will maintain the state monopoly company National Electric Power Generation and Transmission Administration (UTE) for electric utilities distribution while it prepares the company for possible associations with national and foreign private capital. Uruguay has no fossil fuels resources and a small amount of hydroelectric power; thus, Uruguay almost totally relies on imports to meet its energy needs.

COUNTRY OVERVIEW
President: Julio Maria Sanguinetti (next election October 1999)
Independence: August 25 1828 (from Brazil)
Population (7/96E): 3.2 million
Location/Size: Souther South America, bordering the South Atlantic Ocean, between Argentina and Brazil/68,000 sq miles-slightly smaller than Missouri
Capital: Montevideo
Languages: Spanish, Brazilero (Portuguese-Spanish mix on Brazilian frontier)
Ethnic Groups: White 88%, Mestizo 8%, Black 4%
Religion: Roman Catholic 66 %, Protestant 2%, Jewish 2%, Other 30%
Defense: Army, Navy (includes Naval Air Arm, Coast Guard, Marines), Air Force, Grenadier Guards, Coracero Guard, Police

ECONOMIC OVERVIEW
Currency: Uruguayan peso
Market Exchange Rate (8/97): US$1=9.7 pesos
Gross Domestic Product (GDP in US$) (1996): $19 billion
GDP per Capita (1996): $5,936
Real GDP Growth Rate (1996): 4.9%
Inflation Rate (1996): 24%
Major Trading Partners: Brazil, Argentina, United States, Germany, Italy
Merchandise Exports (1995E): $2.3 billion
Merchandise Imports (1995E): $3.1 billion
Major Export Products: wool (11%), meat (12%), rice (10%), manufactured goods (17%)
Major Import Products: oil (10%), intermediate goods excluding fuels (47%), consumer goods (26%), capital goods (17%)

ENERGY OVERVIEW
Minister of Interior: Didier Opertti
Oil Production: None
Oil Consumption (1996): 31,000 barrels per day (b/d)
Crude Oil Refining Capacity (1/1/97): 40,000 b/d
Natural Gas Production: None
Natural Gas Consumption: None
Coal Production: None
Coal Consumption (1996): 4,000 short tons
Electricity Generation (1995): 2.1 gigawatts
Electricity Production (1995): 7.6 billion kilowatthours
Electricity Consumption (1995): 5.4 billion kilowatthours
Electricity Net Exports (1995): 1.6 billion kilowatthours

ENVIRONMENT OVERVIEW
Minister of Housing and Environment: Juan Chiruchi
Total Energy Consumption (1995): 126 trillion Btu
Energy Consumption per Capita (1995): 39.5 million Btu (vs. 331.8 million Btu in U.S.)
Energy-related Carbon Emissions (1995): 1.2 million metric tons (0.02% of world carbon emissions)
Carbon Emissions per Capita (1995): 0.38 metric tons (vs. 5.42 metric tons in U.S.)

Links to other sites:
1997 CIA World Factbook - Uruguay

The following links are provided solely as a service to our customers, and therefore should not be construed as advocating or reflecting any position of the Energy Information Administration (EIA) or the United States Government. In addition, EIA does not guarantee the content or accuracy of any information presented in linked sites.

LatinWorld's section on Uruguay

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File last modified: September 18, 1997

Contact:

Lowell Feld
lfeld@eia.doe.gov
Phone: (202)586-9502
Fax: (202)586-9753