Uruguay

For those not conversant with Uruguay here are some basic facts. Officially it is called the Eastern Republic of Uruguay or in Spanish the Republica Oriental del Uruguay. It is bordered by Brazil to the north, the Uruguay River to the west, the estuary of the Rio de la Plata (literally "River of Silver", but commonly known in English as "River Plate") to the southwest, with Argentina on the other bank of both, and finally the South Atlantic Ocean to the southeast. About half of its people live in the capital and largest city, Montevideo. The nation is the second smallest independent country (176.215 square kilometers) in South America, larger only than Suriname, and is one of the most politically and economically stable.

Today, agriculture still contributes roughly 10% to the country’s GDP and is the main foreign exchange earner, putting Uruguay in line with other agricultural exporters like Brazil, Canada and New Zealand. Uruguay is a member of the Cairns Group of exporters of agricultural products. Uruguay’s agriculture has relatively low inputs of labor, technology and capital in comparison with other such countries, which results in comparatively lower yields per hectare but also opens the door for Uruguay to market its products as "natural" or "ecological." Uruguay ranks 3rd in the world in environmental sustainability out of 146 countries according to the latest Environmental Sustainability Index 2005 (ESI) produced by a team of environmental experts at Yale and Columbia Universities. This index was released at the World Economic Forum in January 2005 in Davos. Finland and Norway ranked 1st and 2nd respectively. High ESI scores are attributed to substantial natural resource endowments, and successful management of environment and development issues. In comparison United States and United Kingdom are placed 45th and 65th respectively in the rankings.

Like the neighboring nation of Argentina, Uruguay was heavily populated by people of European origin. Some 84% of the population of 3.4 million, is white European descent almost evenly split amongst Italians, and Spaniards, with smaller German, Irish, Scandinavian, and Armenian communities. Mestizos (mixed European and Amerindian) constitute the second largest group (11%) and Afro-Uruguayan, and mixed race (5%) forming the only significant ethnic minorities. Church and state are officially separated. Most Uruguayans adhere to the Roman Catholic faith (66%), with smaller Protestant (2%) and Jewish and Armenian Christian (1%) communities, leaving an unknown percentage population (31%). The official language is Spanish which is spoken by nearly the entire population. English is the most popular second language followed by French. Uruguay is distinguished by its high literacy rate (97%), large urban middle class, and relatively even income distribution. During the 1970s and 1980s a period of political change, an estimated 600,000 Uruguayans emigrated, principally to Spain. Argentina and Brazil. Other Uruguayans went to various countries in Europe and USA.

It has a temperate climate characterized by warm summers and mild winters. Rainfall is fairly evenly distributed throughout the year with an average annual precipitation of 1,090 mm (36 inches). The coolest month is June and the warmest is January. The prevailing winds are the Zonda, a northerly hot wind that blows in summer and the Pampero, a cold southerly wind that blows in winter. Average temperature ranges in Montevideo are from 6 to 14 degrees Celsius in July to 17 to 28 degrees Celsius in January.

Exports of meat is increasing from a very low level with the major markets being the US, EEC and N.A.F.T.

In the past three years along with the recovery of the economies of Argentina Chile and Brazil there has begun a new focus on Uruguay as an agricultural destination. Being somewhat behind its large neighboring economies it is felt that due to its small size and independent outlook that its future may soon take a turn for the better. GTSA is seeing a considerable number of new investors looking and in some cases buying properties to take advantage of this opportunity. We have a number of excellent properties for sale that would offer investors excellent exposure to this emerging economy.