Uruguay XXI, the government agency for investment and export promotion, presented survey results on Mar. 16 showing that 79% of U.S. companies operating in Uruguay are satisfied or very satisfied with the country as a business location.
The findings matter because they reflect how foreign investors view Uruguay’s economic environment and highlight areas where improvements could encourage further investment and expansion by U.S. firms.
The survey, conducted by PwC and discussed at an event in the Torre Ejecutiva amphitheater attended by national officials and representatives from both governments and businesses, included responses from 61 out of 244 U.S.-affiliated companies in Uruguay—a response rate of 25%. The Minister of Economy and Finance, Gabriel Oddone, said during the event that “macroeconomic conditions and legal certainty are key factors in ensuring that foreign companies are satisfied. Therefore, this reaffirms the idea that Uruguay is a reliable long-term partner.”
Rossana Grosso, Managing Director Advisory at PwC, explained satisfaction levels were high across most variables measured: “When we analyze the factors influencing the ease of doing business, we find very high satisfaction levels, especially in macroeconomic stability, at 97%, and in institutional and legal security, at 95%.” Other positively rated aspects included tax exemptions and incentives; exchange rate freedom; ease of repatriating dividends; market access conditions; and quality of life. However, respondents indicated dissatisfaction with how long administrative procedures take to complete.
Companies surveyed identified priorities for improving Uruguay’s investment climate such as market access conditions and tax incentives—followed by concerns about costs within the country, competitiveness issues, and labor market conditions.
Mariana Ferreira, executive director of Uruguay XXI who opened the event noted: “One of Uruguay XXI’s objectives is to attract foreign investment and support companies throughout their investment cycle in the country. This type of survey allows us to learn firsthand about the challenges companies face and to work alongside government ministries to continue improving the business environment.” Ferreira also stated: “We aim to work closely with foreign companies so that they not only reinvest their profits in Uruguay but also expand their operations. To that end it is essential to understand opportunities for improvement identified by those already operating in the country.”
These results may guide future policy adjustments intended to make doing business easier for international firms considering or already present in Uruguay.
