Uruguay
In-depth country-focused analysis on Uruguay's economic, political and operational risk environment, complemented by detailed sector insight

Our comprehensive assessment of Uruguay's operating environment and the outlook for its leading sectors are formed by bringing together a wealth of data on global markets that affect Uruguay, as well as the latest industry developments that could impact Uruguay's industries. This unique integrated approach has given us an impeccable track-record for predicting important shifts in the markets, ensuring you’re aware of the latest market opportunities and risks in Uruguay before your competitors.

Uruguay Operational Risk Coverage (9)

Uruguay Operational Risk

BMI View:

BMI View: Uruguay is one of the most attractive locations for investment in Latin America, benefiting from very limited risks to businesses. The country performs particularly well across the BMI Operational Risk Index in comparison to leading emerging markets in the region. Most significantly, Uruguay offers a better - educated and more - flexible labour market, a higher quality and less congested transport network, a more open foreign direct investment (FDI) policy, and a safer environment for foreign workers and businesses, than several leading Latin America countries, including neighbouring Argentina and Brazil. Uruguay is therefore a high regional performer in the BMI Operational Risks Index, with a score of 55.6 placing it sixth in Latin America out of 28 countries. Additionally, it is an outperformer on the South American...

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Uruguay Crime & Security

BMI View:

BMI View: Uruguay's good rule of law and low crime rates in comparison to neighbouring countries, its very low risk from terrorist attacks and the limited possibility of involvement in an interstate conflict mean it is an outperformer in the region in the overall BMI Crime and Security Risk Index , with a score of 58 . 5 out of 100. This ranks it in sixth place out of 28 countries in the Latin America region, with only Chile and Argentina scoring higher in South America. This high score reflects BMI 's view that Uruguay is a particularly attractive location for investment in the region, as foreign workers and businesses are likely to be safer than in neighbouring...

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Uruguay Labour Market

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BMI View: The labour market in Uruguay benefits from a largely healthy, urbanised and literate population, increasing secondary and tertiary education enrolment rates and lower costs of employment than its neighbours. These factors reduce the need to import foreign workers and decrease costs for businesses operating in Uruguay, and are the reasons behind the country's high overall score in the BMI Labour Market Risks Index, in which it is placed fifth out of 28 countries in Latin America with a score of 55. 8 out of 100. This score places it higher than every other country on the South American continent apart from Argentina.

Nevertheless, there are risks to investors looking to locate in Uruguay. These take the form of the poor quality of secondary and...

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Uruguay Logistics

BMI View:

BMI View: Uruguay poses fewer risks to businesses in terms of its logistics network than most of its Latin American peers. The country's economy is set for more - robust growth than the larger markets in the region, which are more susceptible to the consequences of the Chinese industrial slowdown. The utilities and transport networks also offer greater coverage and quality than most of Uruguay's neighbours, while export and import processes are cheaper than in Argentina and Brazil. Uruguay is therefore ranked highly on a regional comparison in the BMI Logistics Risk Index, in sixth place out of 28 Latin American countries. However, its score of 55.5 out of 100 indicates that some risks to business activity remain, most pertinently the threat of electricity and water shortages and the overreliance of supply chains on the road network.

Although...

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Uruguay Trade & Investment

BMI View:

BMI View: Uruguay is a generally welcoming location for foreign investment in the Latin America region, with few barriers to trade in terms of burdensome taxes for foreign businesses or excessive red tape, good intellectual property rights protection and fast-improving e-governance capability. There are few risks to investors in terms of Trade and Investment, and those that are present should not pose a significant threat to businesses in the country. Uruguay therefore performs reasonably well in the BMI Trade and Investment Risk Index, in comparison to other Latin American countries, with a score of 52. 6 out of 100 placing it eighth in the region out of 28 states .

The poor score which Uruguay receives for the Economic...

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Uruguay Industry Coverage (1)

Water

Uruguay Water

BMI View:

BMI View: We have maintained our forecasts for this quarter as there has been little in the way of new developments in the country's water sector . The water infrastructure in Uruguay is well developed, especially in comparison with other Latin American countries; it is also state owned and managed which means that tariffs are low. The government has promised continued investment in water infrastructure, which will improve water quality and ease of access. Good water management also means that the country's economically important agricultural industry enjoys a reliable supply of water.  However, there is still significant wastage in the water sector due to poor and outdated facilities.

The Uruguayan government has taken advantage of the country's large freshwater resources to provide drinking water...

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