1.1. Economic Stability
Uruguay is a country with macro-economic stability that is currently undergoing an economic expansion process that will take the GIP to a new record in 2010, with a growth rate of 7.9% in the third quarter. This represents an accumulated growth of around 4% as compared to the year 2009, and a significant increase of activities in all productive sectors.
1.2. Economic Policy and Free Convertibility
For several decades Uruguay has been applying policies observant of liberalization and openness processes, along with a strict compliance with international obligations. There is full freedom for entry and exit from the country of capitals, as well as currencies and gold, combined with free convertibility of currency with no limitations for the purchase or sale of foreign currencies.
1.3. State Reform
The newly started process for a State reform and deregulation of the economy has brought along the opening of private competition and/or participation in activities that had been so far exclusive of the public sector. Special mention must be made of concessions granted for public works projects, the de-monopolization of insurance and cellular telephony services and the production of electrical power. Other outstanding aspects are: structural changes to the social security system, the Mutual Funds Law to promote the channeling of financial resources, and other legislation like the Securities Market Law and the Trust Funds Law.
There is also a tax reform process under way, whose may features are: the system’s simplification, rationalization and generalization, the stimulation of employment and productive investments, reduced taxes and social security contributions for companies, and the promotion of a more fair and efficient system..