Uruguay

Uruguay: strong, sustained growth, 1980–2025

A small, stable economy built on agricultural exports (beef, soy) and, more recently, forestry and services, Uruguay has one of the lowest inequality and highest per-capita income levels in Latin America. Between 1980 and 2025, Uruguay's GDP per capita grew from $3,443 to $25,216 (current US$), a compound annual growth rate of 4.5% — strong, sustained growth. Annual GDP growth averaged 2.3% with a year-to-year standard deviation of 4.6 points, reflecting considerable volatility and periodic crises. Structurally, agriculture's share of the economy moved from 13.4% to 6.4% of GDP (a classic decline as the economy industrialized/modernized), while services rose from 58.6% to 65.2% of GDP, underscoring a shift toward a services-driven economy. On human development, life expectancy rose from 70.5 to 78.3 years, while tertiary school enrollment moved from 15.5% to 80.0%, while the urban population share grew from 85.0% to 95.7%.

What this growth cost: Growth was not without cost: per-capita CO2 emissions rose from 1.90 to 2.57 tonnes CO2e per person; income inequality (Gini index) narrowed from 43.6 to 40.0; the poverty headcount ratio increased from 0.0% to 0.2%.