Investment opportunities in Uruguay

January 2011

Life Sciences

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1. Uruguay’s attractive conditions for investments in the sector

Skilled personnel in science and technology research areas related to life sciences (biomedicine, biochemistry and biotechnology).

17% of university students in Uruguay study science and technology in the following degree courses: bachelor of biochemistry, bachelor of biological science, doctor of biological sciences, pharmaceutical chemistry specialist, doctor of chemistry, hospital pharmacy specialist, doctorate of veterinary sciences, among others.

There are more than 80 laboratories and research centers that perform biotechnology research. State-of-the-art equipment is readily available as is a suitable building infrastructure with large-scale investments in technology.

A core group of domestic laboratories have operated for many years with a deep understanding of the business, ready to update and broaden product offerings.

Uruguay is one of the few countries in the world that is free from mad cow and

foot-and-mouth disease (with vaccination), enabling supplies of raw materials and processed products of animal origin.1

Uruguay is one of the five countries in the world that is able to produce culturing methods using meat derivatives, which enables access to Middle Eastern and other markets.2

New technology initiatives, such as the Pasteur Institute, the Zonamerica Biotechnology Park, the Pando Science and Technology Park and the Sciences Park, have provided enhanced conditions for scientific resources. This is an attractive feature for multinational firms that wish to perform their own research in the country or outsource research to Uruguayan laboratories.

Uruguayan distribution centers focusing on the region and the domestic market

provide substantial benefits for both multinational and domestic companies. Benefits include: inventory centralization, reduced lead times for the final client, cost reductions from freight elimination, decrease in nationalized inventory in each country, inventory flexibility, and more.

Exports have increased significantly over the years, with production exceeding

local market demand 50 times over in some products.

1 Source: “Value chains (I) – Pharmaceutical chain 2008.”

2 Ibid.

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2. Advantages of doing business in Uruguay

Uruguay has a natural environment that is free from natural disasters. It is politically stable with a representative democracy and a rotation of the three main political parties.

Third highest in South America, Uruguay’s per capita GDP was approximately US$ 10,000 in 2009.

GDP has risen at an average annual rate exceeding 6% since 2004 and rapid growth is expected to continue in the coming years. Since 2004, macroeconomic indicators have remained satisfactory and inflation has been under control (in the single digits). Please see a list of major economic indicators at the end of this document.

An attractive cultural and educational environment, including the use of several languages in addition to Spanish.

Advanced communications and connectivity infrastructure.

Reasonable wage costs.

Foreign investment receives the same treatment as domestic investment. Uruguay has agreements for investments promotion and protection with 27 countries, including Finland, France, Spain, United States, and the United Kingdom.

Foreign investors do not need permits or prior authorizations. Local companies may be 100% foreign owned.

There are no restrictions on the repatriation of capital, profits, dividends or interest.

The currency exchange market is open and there are no limits on foreign currency trading. Investments can be made in any currency.

There are no restrictions on hiring foreign staff (except for companies located in Free Zones where 75% of employees must be local).

Residency permits can be obtained in three months and anyone who has entered the country legally can obtain one and start working, even during the request process.

Several global indicators show that Uruguay is a top location from which to do business. The following charts illustrate some of these indicators.

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Table 1: Uruguay's global rank in terms of democracy and political and social stability

Low Corruption Democracy Index Economic Freedom Global Peace Index

Ireland 14 Ireland 12 Ireland 5 Ireland 6

Chile 21 USA 17 USA 8 Uruguay 24

USA 22 Spain 18 Chile 10 Spain 25

Uruguay 24 Uruguay 21 Uruguay 33 Costa Rica 26

Spain 30 Costa Rica 24 Spain 36 Chile 28

Costa Rica 41 Chile 34 Costa Rica 54 Argentina 71

Brazil 69 Brazil 47 Colombia 58 Brazil 83

Colombia 78 Argentina 51 Brazil 113 USA 85

Argentina 105 Colombia 57 Argentina 135 Colombia 138

Source: Transparency International, 2010

Source: Economist Intelligence Unit, 2010

Source: Heritage Foundation, 2010

Source: Economist Intelligence Unit, 2010

Uruguay also offers insurance against political risk to investors through an agreement between the Uruguayan government and the U.S. Overseas Private Investment Corporation (OPIC). The insurance covers all risks (except credit risk) with claims subject to international arbitration.

3. Regional distribution centers

Uruguay is renowned in Latin America as a logistics platform from which international exporters centralize their inventories for regional distribution. Uruguay’s regional competitive advantages have led to this position, including: a strategic geographic location; experience in rendering multiple logistics services; cost advantages of implementing a regional distribution center; and the Free Zone, Free Port, Free Airport and Bonded Warehouse systems that enable storage and various processes for merchandise free from customs duties, import taxes and export taxes (and from income taxes for companies operating in the Free Zones).

Currently, numerous domestic and international companies in the pharmaceutical sector distribute merchandise to MERCOSUR and the region through various logistics operators based in Uruguay that use the aforementioned systems to reach their clients

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in just a few hours (JIT inventory management), thus avoiding delays and reducing inventories required in each final destination country.

Merck Serono Uruguay - Ares Trading Uruguay S.A. (ATUSA), a

member of Merck Serono, a division of the Merck KgaA company of

Germany, a specialist in innovative pharmaceutical products. Since

1996, ATUSA has operated as a regional distribution center for biotech

products from manufacturing plants in Europe for sale throughout Latin America. In

addition, the company renders regional management services for projects and in

various areas including marketing, regulatory compliance, finance, drug safety and

legal. By mid-2011, the company will have completed construction of a US$ 7.5 million

biotechnology pole in the Zonamerica Free Zone, just outside Montevideo.

4. Research centers

4.1. Pasteur Institute

The Pasteur Institute of Montevideo is a non-profit foundation created by Institut Pasteur of Paris and the University of the Republic of Uruguay. Pasteur has a highly skilled staff and state-of-the-art equipment that is available for the local and regional scientific communities as well as for companies that employ these types of technologies. The Pasteur Institute works on biotechnology projects related to human and animal health, among other areas. Biotechnology services are performed for domestic and foreign companies.

Currently, the following services are available:

Biochemistry and Proteomics Unit

Animal Transgenic and Experimentation Unit

Cellular Biology Unit

Protein Crystallography Unit

Protein Biophysics Unit

Bioinformatics Unit

Recombinant Protein Unit

Foreign companies working with the Pasteur Institute include:

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Biopolis (Spain), which in 2009 optimized an animal model outsourcing system (mice) for the pre-clinical study and analysis of biotechnological molecules and ingredients requested by its European clients.

Danone (France), through its own global research and development center, has collaborated since 2008 to jointly develop a platform of highly predictive biotechnology models for the study of dairy food prototypes with beneficial effects on human health at Pasteur.

4.2. Pando Technology Pole

The Pando Technology Pole (PTP) of the University of the Republic of Uruguay’s College of Chemistry serves as a large research and development center and as a supplier of technology services in the areas of chemistry, biotechnology and nanotechnology for the

pharmaceutical, biotechnology and food industries.

PTP’s main method to promote R&D activities is through the creation of consortiums with companies. Through these consortiums, PTP supplies research time, infrastructure and the latest equipment while the company contributes technical staff, supplies and financial resources. Laboratorios Celsius S.A. and the Conaprole dairy company are two leading national companies that have consortiums with PTP.

Other methods of partnerships with small and medium companies exist as well, through the supply of technological services, on demand development of new products and processes and incubation for new technological undertakings.

Major areas of research include:

a. Pharmaceutical industry

This unit operates in three branches: pharmaceutical technology, fine chemicals and natural products. Emphasis is placed on the development of pharmaceuticals, active ingredient production, organic compound synthesis, natural product work and R&D services for innovative local and global companies. In this area, PLP has partnered with large laboratories, including Celsius, Athena and Libra.

b. Biotechnology

The Biotechnology Laboratory specializes in the development of diagnostic reagents in ELISA formats, latex particle agglutination and immunochromatography. Research

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areas include the development of immunoassays for use in human, animal and vegetable health as well as for the detection of small molecules, food contaminants and environmental toxins.

c. Food

In the food area, PTP works in research and development for mainly local high growth companies. The Nutritional Labeling Support Unit provides integral consulting services for the industry and incorporates required analytical determinations, including specific analyses of trans fats, cholesterol and vitamins, for example.

4.3. Science Park

Parque de las Ciencias (Science Park) is a Free Zone with a special orientation towards life sciences and technologies focused on industrial, logistics and service projects. Operations are forecasted to begin in the first half of 2011. The park will be located in the department of Canelones, just one kilometer from the Carrasco International Airport in Montevideo with fast access to the capital city. Industrial scientific activities in various areas are expected to be performed at the park, including work in pharmaceuticals, cosmetics, biotechnology, veterinary medicine, phytosanitary, medical devices and more. It will also operate as a technology park where software, electronics and robotics will be developed.

Pharmaceutical consortium Mega Pharma is the first shareholder in the undertaking and the first user of the park’s facilities. Mega Pharma will produce 60 million pharmaceutical units at the park to supply 14 countries in Latin America. The initial investment will total US$ 93 million. It will be completed in two phases with a 40,000 m2 plant that will create 750 direct jobs when in operation.

5. Uruguayan pharmaceutical market structure

The Uruguayan pharmaceutical market has more than US$ 300 million in annual sales and employs 3,500 workers directly with a high percentage of technicians and university trained professionals.

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The domestic pharmaceutical sector is composed of four production chains that are linked to biotechnology:3 pharmaceutical labs for human use; labs specializing in veterinary medicine; phytotherapeutic and nutraceutical products; and therapeutic device manufacturers.

Pharmaceutical laboratories for human use include multinational manufacturers of globally patented products and domestic or regional companies that sell similar or generic pharmaceutical products.

Companies in the veterinary sector include those with biological veterinary specialties, veterinary pharmaceutical companies and companies focusing on imports. The domestic market of these products is broad and exports have increased over the last few years.

In the case of phythotherapeutic and nutraceutical products, although development of the chain is incipient in commercial terms, alliances have been formed between the public and private sectors along with local producers, which have enabled Uruguay to achieve a higher quality international standard. This sector is showing development opportunities given that the international demand for natural products has risen significantly.

Manufacturers of therapeutic and diagnostic devices produce reagents, standard reference and control solutions, analytical instruments and systems for diagnostics of illnesses and other conditions.

Biotechnology touches each of these sectors and is the highest growing area with vast development opportunities given that international demand for biotechnological applications in various human and animal pharmaceutical manufacturing segments is increasingly larger.

3 According to the United Nations Convention on Biological Diversity, it is defined as all technological applications

that use biological systems or living organisms or derivatives for the creation or modification of products or processes for specific uses.

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5.1. Pharmaceutical industry production in Uruguay4

Pharmaceutical production has grown following a significant decline during the 2002-2003 economic crisis in Uruguay. In 2004, the industry began to expand again and achieved an annual growth rate of 17.4% between 2004 and 2009. In 2009, annual production hit a peak of US$ 350 million.

Figure 1: Gross pharmaceutical industry production in Uruguay US$ million

Source: Central Bank of Uruguay (BCU). 2008 and 2009 estimates by Deloitte.

5.2. Uruguayan pharmaceutical sector exports and imports5

Sector exports have risen since 2003 to US$ 114 million by 2009. This is due to the fact that in 2003 local labs began to use cheaper raw materials from Asia (China and India). Export values in 2010 were similar to 2008 levels, but were down 8.8% as compared to 2009. The addition of antibiotic exports (NCM 2941) totaling US$ 57,683 is noteworthy. Imports have also seen a significant rise over the last few years and totaled US$ 147 million in 2010.

4 Information obtained from Deloitte’s “Pharmaceutical and medicinal products” report.

5 Includes items 2936, 2937, 2939 and 2941 of the Harmonized System from the chapter “Organic

chemical products” from chapter 29, and all items from chapter 30 “Pharmaceutical products.”

229248

207 197

122 135156

192211

241

323348

0

50

100

150

200

250

300

350

400

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

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Figure 2: Uruguayan pharmaceutical sector exports and imports US$ million

Source: Uruguay XXI based on Customs Bureau data

Table 3: Uruguayan pharmaceutical sector exports and imports per product (US$ million)

Mercosur Common Nomenclature (NCM)

2008 2009

2010

US$ million

% of total

(NCM 3004) Medications 74.1 81.5 66.8 63.7%

(NCM 3002) Human and animal blood for therapeutic uses 14 14.8 20.4 19.4%

(NCM 3006) Pharmaceutical items and preparations 5 6.5 6.7 6.4%

(NCM 3001) Glands and other organs for opotherapy 1 2.1 3.5 3.3%

(NCM 2937) Natural and synthetic hormones 2.6 2.5 3.2 3.1%

(NCM 2936) Natural and synthetic provitamins and vitamins 5.1 4.7 2.8 2.7%

(NCM 3003) Non-dosed medications 1.8 2 1.2 1.1%

(NCM 2941) Antibiotics 0 0 0.1 0.1%

(NCM 2939) Natural and synthetic vegetable alkaloids 0.1 0.1 0.1 0.1%

(NCM 3005) Gauze, padding, bandages and similar items for medical use 0.1 0.1 0.1 0.1%

Total 103.8 114.3 104.9 100.0%

Source: Uruguay XXI based on Customs Bureau data

31 28 3043

5261

76

104114

105

131

8973

8694

105119

146 145

188

0

20

40

60

80

100

120

140

160

180

200

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Exports Imports

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6. Regional and world environment

The global pharmaceutical market has seen massive growth recently. Global sales have gone from US$ 400 billion in 2001 to over US$ 700 billion in 2008. Annual growth over the last decade has averaged 9.8%.

Global exports have experienced sustained growth since 2001 and have averaged 16.4% annually. The five largest exporter countries account for 54% of total world sales, with Germany and Belgium having a market share of 15% and 13%, respectively.

In the region, exports rose at an annual average of 8.3% between 2001 and 2009. Mexico is the region's biggest exporter and accounts for 36% of ALADI exports. Brazil is second at 30% and is followed by Argentina (18%) and Colombia (10%).

Figure 3: Global pharmaceutical sector exports US$ billion

Figure 4: Regional pharmaceutical sector exports* US$ million

Global sector development opportunities

In the coming years, the global pharmaceutical market will undergo transformations resulting from economic, demographic and epidemiological changes. It is estimated that by 2020, the global pharmaceutical market will be worth US$ 800 billion. This will occur to the extent that E7 countries (China, India, Russia, Brazil, Mexico, Indonesia and Turkey) and G7 countries (USA, Japan, Germany, UK, France, Italy and Canada) will continue to on a path of growth and spending patterns in this sector.

Currently, G7 countries spend 1.3% of GDP on medical expenditures and have a 79% share in global sales, while E7 countries spend 0.9% of GDP and have an 8% share in global sales in the sector.

Demand for medications is increasing and new medical needs arise with an ageing population. It is forecasted that by 2020, 9.4% of the population will be 65 or older, as compared to 7.3% just two years ago.

Source: PwC, “Pharma 2020: The vision- Which Path Will Take?” (2010).

0

500

1000

1500

2000

2500

3000

3500

4000

4500

2001 2002 2003 2004 2005 2006 2007 2008 2009

132166

201246

273311

370

431 446

0

50

100

150

200

250

300

350

400

450

500

2001 2002 2003 2004 2005 2006 2007 2008 2009

Sources: Trademap and WTO. Note (*): Exports of countries associated to ALADI

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7. Institutions6

7.1. Life sciences cluster

The life sciences cluster consists of companies and institutions that create synergies to improve the quality of life for people. In the cluster, Uruguayan exports are related to human, animal and plant health and environmental care.

In Uruguay, life sciences companies belong to the following sectors:

a) Biotechnology b) Biomedical engineering and medical devices c) Pharmaceutical and phytotherapeutic industry

7.2. Pharmaceutical Chamber of Uruguay (CEFA)

CEFA, a business organization with more than 50 years experience in the country, brings together international pharmaceutical companies. Members include the following: Abbott, Alcon, Astrazeneca, Bayer, Boehringer Ingelheim, Cibeles, Merck, Sharp & Dohme, GSK, Janssen-Cilag, Pfizer, Tresul, Roche, Sanofi Aventis and 3M.

7.3. National Research and Innovation Agency (ANII)

ANII is one of the tools through which the government seeks to advance Uruguay as an innovative country. The agency’s main objectives include the design, organization and administration of plans, programs and instruments focused on scientific and technological development and the deployment and fortification of innovative capacities. To meet these objectives, the agency offers programs and tools in areas such as research and development, scientific and technological knowledge transfers, entrepreneurship and more.

7.4. Technology Laboratory of Uruguay (LATU)

LATU was created to drive the sustainable development of the country and its international projection through innovation and the transfer of value solutions in analytical, measurement, technological, management and compliance evaluation services in accordance with applicable regulations. LATU offers a wide range of services that add value to technologies and management processes used by public and

6 Contacts: Life Sciences Cluster: www.bionegocios.com.uy; Pharmaceutical Chamber of Uruguay:

cefa@adinet.com.uy; National Research and Innovation Agency: www.anii.org.uy; Technology Laboratory of Uruguay: www.latu.org.uy

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private companies, while seeking to drive development of the entire Uruguayan community.

Noteworthy investment in the veterinary pharmaceutical sector

Merial- A subsidiary of Sanofi-Aventis, a world leader in animal health with approximately 5,700 employees in more than 150 countries around the world. In 2006, Merial made a US$ 2 million investment in Uruguay to build a modern vaccine

plant. This plant manufactures 45 million doses of hexvalent per year to prevent clostridial diseases in ruminants. It supplies multiple countries in the region and around the world, including: Argentina, Bolivia, Brazil, Colombia, Chile, Ecuador, Mexico, Paraguay, Venezuela, Afghanistan, Algeria, Botswana, France, Morocco, and others.

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APPENDICES

1. Domestic and foreign investment promotion

Foreign investors in Uruguay enjoy the same benefits as domestic investors and do not need prior authorization to set up in the country.

Law 16,906 (dated 7 January 1998) declares that the promotion and protection of domestic and foreign investment are of national interest. Decree 455/007 dated 26 November 2007 updated the regulations of this law.

Investment projects in any industry that are submitted and promoted by the Executive Branch may use between 51% and 100% the amount invested as partial payment of corporate income tax, according to project classification. The corporate income tax rate is 25%.

In addition, moveable fixed assets and civil works are exempt from wealth tax and VAT can be recovered for purchases of materials and services for the latter.

2. Specific legal system for Free Zones

Companies that want to perform logistics activities must select either the general or Free Zone systems, depending on the type of product offered, business characteristics and location conditions.

Free Zones were originally established in 1923 to develop industrial centers outside the capital and were reformulated by Law 15,921 dated 17 December 1987. Free Zones can be either private areas controlled by the Ministry of Economy and Finance (Free Zone Area of the General Commerce Bureau) or state property managed by the government or private entities. There are 11 Free Zones currently.

The following activities may be performed: merchandise transformation, commercial activities, storage, foreign and domestic merchandise and raw material assembly and disassembly, service rendering for customers within the Free Zone and outside the country (and in some cases to Uruguay).7

Tax exemptions: Free Zone user activities are not subject to corporate income tax, wealth tax or any other current or future tax. Dividends paid to foreign-based shareholders are not subject to taxes. Foreign staff (up to 25% of employees) can opt out of the Uruguayan social security system.

7 Services that can be rendered in the non-Free Zone national territory are (while respecting state

monopolies, exclusivities and/or public concessions): international call centers (as long as the number of incoming and outgoing calls to and from the national territory is less than 50% of total calls; e-mail services; e-learning services; electronic signature certificate issuance; software production services, IT support and training. Sources: Law 15,921 (article 2), Decree 71/001 (article 3) and Decree 84/006 (article 1).

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Foreign sales and purchases of goods and services are not subject to VAT. Services rendered within the Free Zone are also not subject to VAT.

Non-resident entities are not subject to corporate income tax for activities carried out on foreign merchandise in transit or stored at the Free Zones when the merchandise is not for the national customs territory. They are also not subject to corporate income tax when sales to the national territory do not exceed 5% of total merchandise sales in transit or stored at the Free Zone.

Customs exemptions: sales and purchases to and from the rest of the world are exempt from customs duties, no matter if the acquirer of the purchases is a Free Zone user.

Sales from the non-Free Zone national territory to the Free Zones are considered exports and sales from the Free Zones to the national non-Free Zone territory are considered imports and are subject to corresponding customs duties and national taxes.

Sales from the Free Zones to Mercsosur are subject to the Common External Tariff (AEC), as are goods from countries outside the customs union, except for those explicitly established in bilateral agreements negotiated in the Mercosur framework with Argentina and Brazil.

Given the preceding regulations, it is generally appropriate to use the Free Zones for companies that add industrial value or that perform logistics operations and export mainly goods to the rest of the world (if products are exported to Mercosur the AEC must be paid despite the Mercosur origin).

Government commercial and industrial monopolies are not in effect in the Free Zones.

3. Strategic geographic location in the expanded region (Argentina, Bolivia, Brazil, Chile and Paraguay)

A report by ALADI and Mercosur showed that in 2004, 64% of all extra-regional goods in transit in Mercosur passed through Uruguay, a country with just 2% of regional GDP.8 This result is known as the “Rotterdam effect” where “the amount of commercial traffic is much greater than the market itself could support. It is seen in cases where small economies are surrounded by much larger ones, with reasonably efficient ports and a dense land infrastructure network.”9 In this manner, approximately half of the container movements in the Port of Montevideo corresponds to transit (cargo that arrives via ship and leaves the port and the country via land means), reshipment (a transit modality applied to cargo that arrives via ship, enters the container yard at the port or warehouses and is reshipped abroad) and transshipments (cargo that arrives via ship and leaves via ship without entering the port grounds).

8

Cited in Hodara, Opertti and Puntigliano (2008), View of Uruguay as a Regional Logistics Center.

9 Ibid.

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4. Trade agreements and investment protection 4.1. General trade agreements

Uruguay has been part of the World Trade Organization (WTO) since its creation in 1995 and is part of the Latin American Integration Association (ALADI, 1980) along with nine other South American countries plus Cuba and Mexico.

In the framework of ALADI, the Southern Common Market (Mercosur) was formed in 1991 with Argentina, Brazil, Paraguay and Uruguay. Mercosur became a customs union in 1995 with the free movement of goods, the elimination of customs duties and non-tariff barriers between member countries, and a common external tariff for countries outside the bloc. Venezuela is currently in the process of joining Mercosur.

Within the framework of ALADI, Mercosur has signed trade agreements with other countries: Chile (1996); Bolivia (1996); Colombia, Ecuador and Venezuela (2004); Peru (2005); and Israel (2007), all of which form respective Free Trade Areas with tariff reduction schedules that should be completed no later than 2014/2019, according to the country.

Uruguay also signed a free trade agreement with Mexico (2003), which has enabled the free movement of goods and services between both countries since June 2004, with certain exceptions that end in 2014.

4.2. Investment protection agreements

Uruguay has signed investment security, protection and promotion agreements with 27 countries, including Spain, Finland, France, United States and the United Kingdom.

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Additional statistical data

Uruguay at a glance (2009)10

Official name República Oriental del Uruguay (Oriental Republic of Uruguay)

Location South America, bordering Argentina and Brazil

Capital Montevideo

Surface area 176,215 km

2. 95% of the territory has soil suitable for agriculture and

livestock activities Population 3.3 million

Population growth 0.3% (annual)

Per capita GDP US$ 9,458

Per capita GDP (PPP) US$ 13,019

Currency Uruguayan peso ($)

Literacy 98%

Life expectancy at birth 76 years

Form of government Democratic republic with presidential system

Political divisions 19 departments

Time zone GMT - 03:00

Official language Spanish

Main economic indicators 2005-2009

2005 2006 2007 2008 2009

Annual GDP growth rate 7.5% 4.3% 7.5% 8.5% 2.9%

GDP (PPP) US$ millions 32,048 34,602 38,235 42,543 43,551

GDP, US$ millions (current) 17,367 20,035 24,262 32,207 31,606

Exports (US$ millions), goods and services11

5,085 5,787 6,936 9,291 8,551

Imports (US$ millions), goods and services 4,693 5,877 6,775 10,217 7,775

Trade surplus / deficit (US$ millions) 393 -90 166 -926 796

Trade surplus / deficit (% of GDP) 2.3% -0.5% 0.7% -2.8% 2.5%

Current account surplus / deficit (US$ millions) 42 -392 -212 -1.502 258

Current account surplus / deficit (% of GDP) 0.2% -2.0% -0.9% -4.7% -0.8%

Overall fiscal balance (% of GDP) -0.4% -0.5% 0.0% -1.4% -2.2%

Gross capital formation (% of GDP at current prices) 16.5% 18.6% 18.6% 20.2% 19.1%

Gross national savings (% of GDP) 17.6% 16.9% 19.0% 17.9% 17.1%

Foreign direct investment (US$ millions) 847 1,493 1,329 1,840 1,139

Foreign direct investment (% of GDP) 4.8% 7.5% 5.4% 5.7% 3.6%

Exchange rate peso / US$ 24.5 24.1 23.5 20.9 22.5

Reserve assets (US$ millions) 3,071 3,097 4,121 6,329 8,373

Unemployment rate (% of EAP) 12.2% 11.4% 9.7% 7.9% 7.7%

Annual inflation rate 4.9% 6.4% 8.5% 9.2% 7.5%

Net foreign debt (US$ millions) 8,938 9,157 9,662 8,254 11,123

10

Note: GDP data was taken from the IMF; data on foreign trade, FDI, exchange rate, international reserves and foreign debt was provided by the Central Bank of Uruguay (BCU); population growth, literacy, unemployment and inflation data comes from the National Statistics Institute (INE). 11

For 2008 and 2009, data includes a partial estimate of activities at Free Zones and information on the survey coordinated with the Uruguayan Chamber of Information Technologies for software related activities.

08 Otoño

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