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Integrated SDG Insights

Uruguay

UNDP’s Integrated SDG Insights explore how to achieve the SDGs by 2030. So that no one is left behind.

How To Read This Report

‘SDG Insights’ playbooks transcend development “as usual,” and leverages data innovation, AI and systems analysis to chart credible pathways that help countries meet the 2030 Agenda.

SDG Moment This section provides an overview of a country's economic growth trajectory, with new insights on sustainability and inclusiveness of growth pathways.

SDG Trends & Priorities This section builds from the foundation of national SDG progress and uses machine learning to analyse national development ambition with an SDG lens.

SDG Interlinkages Combined, these insights are mapped against SDG interlinkages to define policy choices the accelerate SDG progress, tailored to national context.

Finance & StimulusThese policy choices are made against fiscal constraints and opportunities for stimulus mapped in this section to ensure choices translate to development impact and leave no one behind.

1. SDG Moment

While economic growth is a key element in achieving the SDGs, many countries are intent on moving beyond growth as a yardstick for progress. In the short run, growth enables the SDGs; but in the long run, the SDGs aim to transform the pattern of growth itself.

GDP Growth Pathways

People

Poverty: Percentage of the population under each threshold (PPP$ a day).

Data not available.

Planet

Carbon Intensity: CO2 emissions intensity of GDP (tCO2 per PPP $1,000).

Uruguay’s economy in 2023-2025 is muddling through, with a GDP per capita of US$ 21.164. Accordingly, Uruguay’s commitments to achieving the SDGs are focused on increasing people’s well-being by leaving no one behind, and by tackling climate change mitigation and adaptation within public policy frameworks and coordinated actions with other countries.

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This pace of growth is expected to exert a moderate positive effect on reducing the incidence of poverty by most thresholds and the share of people living under $14 a day (i.e. in poverty and vulnerability-to-poverty). Moreover, the economic expansion would be somewhat less dependent on carbon emissions as the country’s carbon emissions intensity of GDP is projected to decline at annual rates of 4%-5%.

3. SDG Interlinkages

Maps synergies and trade-offs of national priorities to the most relevant SDG targets to chart policy pathways with most potential to accelerate progress.

1.3: Implement nationally appropriate social protection systems and measures for all, including floors, and by 2030 achieve substantial coverage of the poor and the vulnerable

Uruguay's strong commitment to social protection, inclusive social policies and the hight level of old age pension coverage (around 90% of the population over 65 years old) has resulted in a significant poverty reduction.

However, the advanced stage of demographic transition is putting pressure through increasing fiscal costs. In fact, in pursuit of financial sustainability, a new retirement and pension system has recently been approved. 

The country has made significant progress with the creation of the Integrated National Care System as the fourth pillar of social protection. Investing in nationally appropriate social protection with specific focus on the most vulnerable and recognizing the value of unpaid care and domestic work through social protection policies could lead not just to maintain the low levels of poverty but also help close the gaps on several other indicators, such as labour force participation, productivity rates and child development.

5.5: Ensure women’s full and effective participation and equal opportunities for leadership at all levels of decision-making in political, economic and public life

Despite being recognized worldwide for its strong democracy and solid institutions, achieving gender equality and ensuring women's full and effective participation at all levels of decision-making still poses significant challenges in Uruguay. At the political level, only one out of five seats in Parliament are occupied by women and their participation in the highest executive positions of government at the national and departmental levels continues to be marginal. Women are also underrepresented in other decision-making spheres, such as public and private companies, cooperatives, unions and academia. 

In response to this challenge, two bills proposing parity in the composition of lists for national elections and other political representation spaces are currently under parliamentary discussion.

In order to achieve equitable participation between genders in decision-making spaces (Target 5.5), it is also essential to advance towards structural transformations in the way gender relations and dynamics are conceived. In addition to its implications from a human rights perspective, this will have a broad impact in terms of sustainable human development due to its beneficial effects on women's participation in the labour market, on productivity levels and on poverty reduction (Target 1.3).

13.1: Strengthen resilience and adaptive capacity to climate-related hazards and natural disasters in all countries

Uruguay promotes the integration of disaster risk reduction and climate change adaptation into development planning. The National Emergency System, in charge of disaster risk planning and management, is part of the National Climate Change Response System, which guarantees the articulation between both issues. 

A key tool to strengthen resilience to risks arising from climate change and natural disasters is the Relocation Plan, which has managed more than 60 working agreements with local governments, allowing the relocation of people in flood-prone areas and the rehabilitation of these lands for public use. In addition, the country approved the National Climate Change Plan, the National Policy on Comprehensive Emergency and Disaster Risk Management for the period 2019-2030, three National Climate Adaptation Plans (cities and infrastructure; coastal zone; and agricultural sector), the Long-Term Climate Strategy and two Nationally Determined Contributions (NDCs). These documents contain implemented or ongoing actions and targets that contribute to reducing the country's vulnerability to the impacts of climate variability and climate change, to building adaptive capacity and resilience, and to facilitating the integration of climate change adaptation into the development process.

Addressing climate change will require making finance flows consistent with a pathway towards low greenhouse gas emissions and climate-resilient development. Uruguay has made significant advances in that regard, by the issuance of a sovereign sustainability linked bond indexed to climate change and nature indicators that are aligned with the targets set by the country’s NDC. The development of innovative mechanisms and the alignment of financial flows of the financial sector with climate and sustainable development objectives will accelerate the transition to a more climate-resilient future. 

15.1: By 2020, ensure the conservation, restoration and sustainableuse of terrestrial and inland freshwater ecosystems and their services.

By prioritizing Target 15.1 in its 2021-2025 National Development Plan, Ecuadorreaffirmed the significance of protecting and preserving terrestrial ecosystems andtheir biodiversity. This includes recognizing that the investment projects intendedto fulfil Target 15.1 will not only contribute to achieving the SDGs 13, 14 and 15, butwill also help restore ecosystems that underpin the availability and comprehensivemanagement of water resources (SDG 6) and promote their sustainable use (Target12.2). Additionally, it will also foster the generation of new energy from renewablesources (Target 7.2).

To this end, Ecuador seeks to strengthen the management of the National Systemof Protected Areas through its 2022-2032 Strategic Plan and the implementationof the National Forest Restoration Plan 2019-2030. These instruments serve as thetechnical, legal and financial foundation for executing local forest restorationprocesses with a landscape vision, with an overall goal of covering 30,000hectares through its projects. Considering that the proportion of national territoryunder conservation or environmental management, as of 2022, stands at 22.1%, itis necessary to mobilize additional financial resources from various sources andestablish robust governance (Target 17.3) to intensify the care of protected areas.This ensures the conservation of natural and cultural resources, genetic flows, theprovision of environmental services for the benefit of the population and thealignment of policies on the ground.

Futures Scenarios

SDG Push is a futures scenario based on 48 integrated accelerators in the areas of Governance, Social Protection, Green Economy and Digital Disruption. It uses national data to explore the impact on human development by 2030 and 2050 across key SDG indicators. It does this by using ‘International Futures,’ a systems model designed to explore interactions across development systems.

Poverty <$1.90 Per Day (Number of People)

Malnourished Children Under 5 (Number Of Children)

Malnourished Children Under 5 (Number Of Children)

4. Finance and Stimulus

Many countries are facing reduced fiscal space, high debt levels, rising interest rates and downgrades on credit ratings. Fiscal and financial constraints tend to slow or even reverse SDG progress.

Uruguay's gross government debt, projected at 62.3% of GDP in 2023, is 6.5 percentage points (pp) below the emerging market and middle-income economies (EMMIE) group’s figure of 68.8%. The country is projected to collect 26.7% of GDP in revenue this year, which is close to the EMMIE group’s 26%. 

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Uruguay's external debt servicing relative to revenue, at a projected 13% this year, is slightly above the EMMIE group’s 12.3%. The country's credit rating is in the ‘lower medium investment grade’ category, and thus significantly above the EMMIE average. The current fiscal deficit reaches 3.7% of the country's GDP. Nonetheless, the fiscal deficit for 2023 is expected to drop to 3.2% of GDP, then to 2.7% in 2024.

SDG Stimulus

The UN Secretary General’s SDG Stimulus Plan lays out a blueprint for action within the existing financial architecture. It includes:

  • Providing liquidity to support recovery in the near term
  • Enhance debt relief for vulnerable countries.​
  • Expanding development financing by MDBs
  • Align financial flows with the SDGs and Paris Agreement, according to country-level priorities and needs, for example through the rollout of the UN Integrated National Financing Framework (INFFs).

Given the projected fiscal and financial constraints faced by

Uruguay

possible funding options for the investments derived from the identified interlinkages are as follows:

  • Tax and revenue reform
  • Debt for SDGs
  • Blended and public-private finance
  • SDG-aligned business environment and investment

Methodology & Data Sources

Click here to view the Methodological Note for the Integrated SDG Insights.

This report is the result of a global exercise carried out using artificial intelligence to identify SDG priorities based on 10 national government documents, together with SDG progress and SDG interlinkage analysis. The implementation and monitoring of the 2030 Agenda in Argentina should be consulted in the Country Reports and National Voluntary Reports.

SDG Moment

Methodology
Assesses challenges and opportunities in national growth trajectories with insights on environmental sustainability and inclusiveness.

Data Sources
Future trajectories to 2025 are based on IMF-WEO GDP projections, distributions of per capita income or consumption from the World Bank, and CO2 emissions from the Global Carbon Budget 2022 and EDGAR (JRC and IEA).​

Trends & Priorities

Methodology
SDG trends tracks progress from 2015 to date for the 231 indicators. National priorities are analysed using machine learning to reveal the most prominent SDGs referenced in national policy documents.

Data Sources
SDG trends tracks progress from 2015 to date for the 231 indicators. National priorities are analysed using machine learning to reveal the most prominent SDGs referenced in national policy documents.

Interlinkages

Methodology
SDG trends tracks progress from 2015 to date for the 231 indicators. National priorities are analysed using machine learning to reveal the most prominent SDGs referenced in national policy documents.

Data Sources
The exercise globally considered a total of 454 documents published from 2015 to August 2022. (Miola et al., 2019 updated in 2021-2022)​

Finance & Stimulus

Methodology
Provides insight into indicators of fiscal and financial stress with options (INFF) for stimulus and other means to accelerate progress.

Data Sources
Most recent resource data from UNU-WIDER GRD (between 2018 and 2021), debt and revenue from IMF WEO (between 2020 and forecasts for 2023), external debt from IDS (2023), yields from Haver Analytics (8 June 2023), credit ratings from S&P, Moodys and FITCH (2023), and DSA ratings from World Bank/IMF (31 May 2023).