05a Uruguay

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.