Executive summary

In recent years, Uruguay has made remarkable progress in strengthening its macroeconomic management and implementing an ambitious agenda of social reforms. For over a decade, economic growth has been solid and the remnants of the economic crisis in the early 2000s have been mitigated. Stable macroeconomic policies and a favourable external environment have contributed to these accomplishments. Uruguay’s progress is also reflected in improvements across various dimensions of well-being. As one of the few high-income countries in Latin America, and with the lowest levels of poverty and income inequality on the continent, Uruguay currently benefits from above-average outcomes in areas such as life satisfaction, environmental quality, health, trust, perception of government and air quality. At the same time, there are impending challenges stemming from the country’s vulnerability to external shocks, its undiversified economic structure, and its limitations in the provision of human capital and infrastructure.