Uruguay - Economic memorandum

Report No. 498-UR Economic Memorandum on - J Li7 c Uruguay September 8, 1975 Latin America and the Caribbean Regional Office Not for Public Use Document of the International Bank for Reconstruction and Development International Development Association This report was prepared tor official use only by the Bank Group It may not be published, cluoted or cited withiout Bank Group authiorizdtion. The Bank Group does not accept responsibility tor the accuracy or completeness of the report.  CURRENCY BQUIVALENT Currency Unit: Peso Exchange Rates Effective June 20, 1975 Commercial Rate Buying US$1.00 Ur$2,300 Selling US$1.00 Ur$?,330 Financial Rate Buying US$1.00 Ur$2,650 Selling US$1.00 Ur$2,645 (est.) Average Excchange Rates (Commercial-Selling) 1972 1973 .94 US$1 .00 = Ur$539.00 Ur$865.65 Ur$t ,184.0o  This economic memorandum is based principally on the findings of missions to Uruguay from February 10 to March 9, 1974, composed of Miss Vial (Chief), Messrs. Malik, Singh, Blazic (all of the Bank), Mr. Wainer (OAS) and Mr. Argyropoulos (UNESCO), the findings of Mr. Baskind (Central Projects) who visited Uruguay in November/December 1973. Subsequently, a mission consisting of Messrs. Greene and La Pittus visited Uruguay from December 1 to 20, 1974, to provide updated information.   ECONOMIC MEMORANDUM ON URUGUAY TABLE OF CONTENTS Page No. MAP COUNTRY DATA SUMMARY AND CONCLUSIONS.,........................ i - iii I. RECENT ECONOMIC PERFORMANCE A. BACKGROUND. ............... 1 B. GROWTH OF INCOME AND OUTPUT, 1973-74. .... 2 C. PRICES AND WAGES, ............................... 5 D. MOMEY AND CREDIT................................ 7 E. FISCAL PERFORMANCE . ............. . ...... 9 F. BALANCE OF PAYMENTS........... ................ 13 II. ECONOMIC REFORM AND GROWTH PROSPECTS A. DEVELOPMENT STRATEGY...........o...... .. 18 B. THE ECONOMIC REFORM PROGRAM............. 19 C. SECTORAL GROWTH PROSPECTS............. ...... 24 D. GROWTH PROSPECTS, 1975-80........ ............. 32   8 ~~~~58 36 SiJ-52 -30 301 URUGUAY -@--- .r Main Roads ____Secondary Roads -----iRailroads '4" Main Airports ' Secondary Airports