Uruguay stands out in Latin America for its strong institutions, high per capita income, and some of the lowest levels of poverty and inequality in the region. More than 60% of its population belongs to the middle class —the region's largest share.

Nonetheless, the country faces structural challenges, including educational outcomes below those of countries with similar income levels, limited global integration, and significant vulnerability to climate shocks. Poverty rates are twice as high among children, adolescents, and Afro-descendant communities. While inequality is low for the region, it remains high compared to peers in other high-income regions.

Uruguay has also emerged as a pioneer in innovative climate finance, working with the World Bank to develop the world’s first budget support loan that links interest payments to the achievement of ambitious climate goals.

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