Fast-growing Uruguay is still an underperformer

In the past few years the country has reduced its dependence on offshore banking and links to Argentina and has grown its exports of agricultural produce and position as an important entrepôt. But its capital markets remain severely undeveloped, a situation that might be improved by a programme of privatization. Jason Mitchell reports from Montevideo.

URUGUAY WANTS TO reform its banking secrecy laws so that the Organization for Economic Cooperation and Development removes it from its grey list of tax havens, a sign of the declining importance of offshore banking to the country and the robust growth of many other industrial sectors.

This small, beautiful Latin American nation, with a population of 3.3 million, has one of the fastest-growing economies in the region and attracts a healthy rate of foreign direct investment as a percentage of GDP.

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