Uruguay

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

Uruguay

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

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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 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 56....

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Uruguay Crime & Security

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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 58.6 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...

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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. Nevertheless, there are risks to investors looking to employ workers in Uruguay. These take the form of the poor quality of secondary and tertiary education, the small size of the working age population, and rigid regulations which govern workers rights. Due to these factors, Uruguay is placed seventh out of 28 states in the Latin America region, with a score of 58.8 out of 100.

The education system in Uruguay produces mixed results for investors. Primary school enrolment rates are high and basic skills such as literacy are widespread, reducing...

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Uruguay Logistics

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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 56.5 out of 100 indicates that some risks to business activity remain, most pertinently the threat of electricity and water...

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Uruguay Trade & Investment

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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, and good intellectual property rights protection. There are a limited number of 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 overall in the BMI Trade and Investment Risk Index, in comparison to other Latin American countries, with a score of 52.0 out of 100 placing it ninth in the...

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Uruguay Industry Coverage (2)

Telecommunications

Uruguay Telecommunications

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BMI View: We highlight Uruguay as one of the most developed telecoms markets in Latin America, particularly in the mobile segment, where it leads the region in smartphone penetration, postpaid subscriber mix and 3G/4G uptake.  All three mobile operators have launched 4G services as of September 2014, with competition expected to drive uptake. The success of the Uruguayan mobile market has largely been a result of its strong economic performance, which has led to high consumer purchasing power.  Nevertheless, BMI remains concerned about the risk of government involvement in the sector through its lack of a truly independent regulator and its stake in Antel. We believe that policymaking will be characterised by broad continuity and is therefore likely to see Antel...

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Water

Uruguay Water

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BMI View: We have expanded our forecast coverage to provide additional projections for household consumption, losses and mains and sewage network connectivity. Overall, we have a positive outlook of the Uruguayan water services sector. However, in Uruguay there are fewer opportunities for both services and infrastructure companies than can be found in some other Latin American countries.

Uruguay's water infrastructure is well developed, especially in comparison with other Latin American countries; it is also state-owned and -managed, which means that tariffs are low but there are only limited opportunities for private-sector players. The government has promised continued investment...

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