Changes

===Principal Government Officials===

===Principal Government Officials===

*President--Tabaré Vázquez

*President—Tabaré Vázquez

*Minister of Foreign Affairs--Reinaldo Apolo Gargano Ostuni

*Minister of Foreign Affairs—Reinaldo Apolo Gargano Ostuni

*Ambassador to the United States--Carlos Alberto Gianelli Derois

*Ambassador to the United States—Carlos Alberto Gianelli Derois

*Ambassador to the United Nations--Alejandro Artucio Rodriguez

*Ambassador to the United Nations—Alejandro Artucio Rodriguez

*Ambassador to the OAS--Dr. Lujan Flores  

*Ambassador to the OAS—Dr. Lujan Flores  

===Foreign Relations===

===Foreign Relations===

In 2002, Uruguay went through the steepest economic and financial crisis in recent history, which developed mostly from external factors. Devaluation in Brazil in 1999 made Uruguayan goods less competitive, and an outbreak of foot and mouth disease in 2001 curtailed beef exports to North America. Starting in late 2001, an economic crisis in Argentina undermined Uruguay's economy, with exports to Argentina and tourist revenues falling dramatically. In mid-2002 Argentine withdrawals from Uruguayan banks started a bank run that was overcome only by massive borrowing from international financial institutions. This, in turn, led to serious debt sustainability problems. A successful debt swap helped restore confidence and significantly reduced country risk.  

In 2002, Uruguay went through the steepest economic and financial crisis in recent history, which developed mostly from external factors. Devaluation in Brazil in 1999 made Uruguayan goods less competitive, and an outbreak of foot and mouth disease in 2001 curtailed beef exports to North America. Starting in late 2001, an economic crisis in Argentina undermined Uruguay's economy, with exports to Argentina and tourist revenues falling dramatically. In mid-2002 Argentine withdrawals from Uruguayan banks started a bank run that was overcome only by massive borrowing from international financial institutions. This, in turn, led to serious debt sustainability problems. A successful debt swap helped restore confidence and significantly reduced country risk.  

Uruguay’s economy resumed growth in 2003--with a 2.5% rise in GDP--and surged in 2004 and 2005 with growth rates of 12.3% and 6.6%, respectively. Growth equaled 7.0% in 2006 and is expected to reach 4.5% in 2007.  

Uruguay’s economy resumed growth in 2003—with a 2.5% rise in GDP—and surged in 2004 and 2005 with growth rates of 12.3% and 6.6%, respectively. Growth equaled 7.0% in 2006 and is expected to reach 4.5% in 2007.  

Uruguay’s spectacular recovery over the past couple of years has been based on increased exports, especially to North America. The U.S. became Uruguay’s largest export market in 2004, thanks in large part to meat exports. Uruguay enjoys a positive investment climate, with a strong legal system and open financial markets. It grants equal treatment to national and foreign investors and, aside from very few sectors, there is neither de jure nor de facto discrimination toward investment by source or origin.  

Uruguay’s spectacular recovery over the past couple of years has been based on increased exports, especially to North America. The U.S. became Uruguay’s largest export market in 2004, thanks in large part to meat exports. Uruguay enjoys a positive investment climate, with a strong legal system and open financial markets. It grants equal treatment to national and foreign investors and, aside from very few sectors, there is neither de jure nor de facto discrimination toward investment by source or origin.