Uruguay - Current economic position and prospects

R ESTRI CT E D Report No. W.H. 51- This document was prepared for internal use in the Bank. In making it available to others, the Bank assumes no responsibility to them for the accuracy or completeness of the information contained herein. INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT CURRENT ECONOMIC POSITION AND PROSPECTS OF URUGUAY September 28, 1956 separtment of Operations Western Hemisphere  CURRENCY EQUIVALENTS Official Basic Selling Rate (essential imports) U.S. $1 . 2.10 pesos 1 peso = U.S. $0.48 1 million pesos = U.S. $476,190 Official basic buying rate U.S. $ 1 a 1.519 pesos Free commercial rate 1/ - No data available Free financial rate 2/ - 4.30 pesos per dollar (June 1956) 1 / For non-essential imports; market extablished August 1956. Exports are made at various rates, resulting from mixing of the basic buying rate with the free commercial rate in differing proportions. 2/ For invisibles.  TABLE OF CONTENTS Page No. BASIC DATA SUM2At.RY AND CONCLUSlSIONS I. The Uruguayan Economy II. Recent Economic Events 2 A. External Trade and Finance 2 B. Prices and Money 3 C. Public Finance D. Domestic Goverrnment Bonds TII. Ti'he General Outlook 5 IV. The Export Position and Prospects 7 .h. Pastoral Products 7 13. Crop Agriculture 9 C. Future Export Earnings 10 D. Fluctuation of Export Earnings 10 E. Direction cf Trade 11 V. Creditworthiness 11 STATISTICAL APPEDNDIX Table 1 - Suumnary of External Public Debt 13 Table 2 - External Debt Service 1 Table 3 - External Trade and Foreign Exchange 15 Table 4 - Main Exports 16 Table 5 - Destination of Pastoral Exports 16 Table 6 - Raw Wool Exports 17 Table 7 - Trade Balances by Area 1'1 Table 8 - Wool Production, Prices and Exports 18 Table 9 - Export Prices 19 Table 10- Composition of Imports 20 Table 11- iVioneyr, Credit and Prices 21 Table 12- Public Finance 22 Table 13- Net Visible Governmient Borrowing 23  BASIC DATA Area 72,153 square miles (86% arable and pasture) Population 2.6 million (1955) National Income Roughly 0380 per head 1953 1955 Exports p270 million W184 mill_on of which: wool 61 jo 57% meat 16/0 4% Imports 4193 million 0225 million ofL which: foods 15% 1 4' fuels 12% 12% raw materials 26% 23% capital goods 40% 41% Gold and Foreign Exchange (End of year: net) 4234 million v141 million Fiscal Revenues Ps.395 million Ps.515 million Fiscal 1xpenditures-/ Ps.449 million Ps.560 million Total Deficitsl/ 2/ Ps. 76 million Ps. 71 million Cost of living (1