If you’re from Uruguay
or have visited the country,
your wallet has surely felt it.
A recent study has stated
it is not only the most
expensive country in Latin America,
but also one of the most expensive
in the world.
When the prices of about 600 products
were compared between Uruguay and
43 other countries,
Uruguayan products were on average
27% more expensive.
They cost more than double
than what they do in Bolivia,
80% more than in Mexico,
and 20% more than neighboring
Brazil and Argentina.
They were even more expensive than
countries like France, Germany,
or the United Kingdom.
But what has led Uruguay to become
one of the most expensive countries
in the world?
That’s what we explain in this video.
Let’s begin by clarifying that Uruguay,
with its 3.4 million inhabitants,
is considered a high-income country.
For example, it has one of the highest
minimum wages in Latin America.
According to Uruguay’s
National Institute of Statistics,
each Uruguayan household earns around
$2,500 per month on average.
The country also has the largest
middle class in Latin America and
the Caribbean, accounting for more than
60% of its population.
It also boasts a social protection system
that has made it stand out in the region
for its egalitarian society.
According to the study,
only nine countries
Japan, Finland, Israel, Ireland
Sweden, Denmark, Switzerland,
Norway, Iceland, were more expensive.
For hygiene and cleaning products,
Uruguay is 58% more expensive than
the average of other countries.
For food and non-alcoholic beverages,
it's 55% more expensive,
and for IT and electronic products,
43% more expensive.
Uruguay has one of the most developed
welfare states in Latin America.
For instance, it invests 4.9% of its GDP
in education and 6.5% in health—
one of the highest rates in the region.
One factor that influences the high prices
of products is that Uruguay imports a
long list of items, as they are
not produced locally.
And that list is long, as the country’s
economy is largely based on
livestock farming and agriculture.