Uruguay

FOOTBALL IN URUGUAY Football is the most popular sport in Uruguay. Along with Brazil and Argentina, Uruguay stands among the most successful South American teams at the international level according to history. Winner of theWorld Cup in 1930 and 1950, Uruguay has failed to repeat its early conquests recently. In fact, it just managed to qualify to only 2 of the last 6World Cups. The 2002 Korea/Japan World Cup will then be the opportunity to show a new era for Uruguayan football. THE STATE OF THE ECONOMY The Uruguayan economy has been affected by successive adverse external shocks resulting in a prolonged recession and a rise in unemployment. The most recent and strongest of these shocks has been the Argentine crisis. GDP is estimated to have declined by2%in 2001. The economy remains weak at the present, with prospects of growth turning positive only by the end of the year. On average, the Uruguayan economy will likely post further GDP contraction in 2002. Onthe inflation front, consumer price inflation went down to 3.6% in 2001, the lowest annual inflation rate in decades. STATE OF THE NATION The recent economic difficulties showed the need for structural reforms in Uruguay. The government has already adopted some measures to deregulate the economy and deepen the reform of the pension system. This is part of an overall strategy to liberalize the economy over the medium-term to allow faster growth of productivity, and hence to boost economic growth. Upcoming steps will require opening up the economy, negotiating new trade agreements, and implementing an ambitious state reform. THE 2002 WORLD CUP Uruguay became the 32nd and final country to qualify after beating Australia in a play-off for the last place in theWorld Cup finals. This marked the return of the South American nation to theWorld football stage since Italy 1990, its last appearance. Uruguay is a nation small in size, but big in football. It has won twoWorld Cups, in 1930 and 1950, and holds two fourth places in 9 appearances in theWorld Cup. In the first round, Uruguay will face the current champion France as well as Denmark and Senegal. While France appears as the favourite to win the group, Uruguay has a chance of obtaining second place and moving to the second round. In the event of reaching the second round, Uruguay would likely face either Argentina or England, who stand as the favourites to qualify for the second round in Group F. The team brings to the Cup the talent of Alvaro Recoba (Internazionale, Italy) as its main asset. Previous Appearances: 9 1930, 1950, 1954, 1962, 1966, 1970, 1974, 1986, 1990 Honours Winners: 1930, 1950 Semifinalists: 1954 (4th), 1970 (4th) Hosts: 1930