WEBVTT

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If you’re from Uruguay

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or have visited the country,

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your wallet has surely felt it.

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A recent study has stated

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it is not only the most

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expensive country in Latin America,

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but also one of the most expensive

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in the world.

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When the prices of about 600 products

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were compared between Uruguay and

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43 other countries,

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Uruguayan products were on average

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27% more expensive.

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They cost more than double

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than what they do in Bolivia,

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80% more than in Mexico,

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and 20% more than neighboring

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Brazil and Argentina.

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They were even more expensive than

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countries like France, Germany,

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or the United Kingdom.

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But what has led Uruguay to become

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one of the most expensive countries

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in the world?

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That’s what we explain in this video.

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Let’s begin by clarifying that Uruguay,

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with its 3.4 million inhabitants,

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is considered a high-income country.

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For example, it has one of the highest

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minimum wages in Latin America.

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According to Uruguay’s

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National Institute of Statistics,

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each Uruguayan household earns around

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$2,500 per month on average.

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The country also has the largest

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middle class in Latin America and

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the Caribbean, accounting for more than.

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60% of its population.

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It also boasts a social protection system

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that has made it stand out in the region

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for its egalitarian society.

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According to the study,

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only nine countries

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Japan, Finland, Israel, Ireland

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Sweden, Denmark, Switzerland,

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Norway, Iceland, were more expensive.

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For hygiene and cleaning products,

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Uruguay is 58% more expensive than

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the average of other countries.

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For food and non-alcoholic beverages,

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it's 55% more expensive,

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and for IT and electronic products,

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43% more expensive.

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Uruguay has one of the most developed

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welfare states in Latin America.

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For instance, it invests 4.9% of its GDP

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in education and 6.5% in health—

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one of the highest rates in the region.

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One factor that influences the high prices

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of products is that Uruguay imports a

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long list of items, as they are

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not produced locally.

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And that list is long, as the country’s

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economy is largely based on

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livestock farming and agriculture.