Contribution of the forest sector to the Uruguayan economy: A first approach with National Accounts

Abstract

The forest sector development in Uruguay has been based on planted forest areas, mainly with eucalyptus and pine. The Parliament passed the Forestry Law in 1987 and since then the sector has been growing rapidly. The objective of the study is to analyse the contribution of the forest sector in the Uruguayan economy, its evolution between 1997 and 2018 and its distribution in recent years. The research used information from the new National Accounts released by the Central Bank of Uruguay, and, in this framework, the forest sector is studied for the main macroeconomic variables and production. The results show that in the period 1997-2018, while the Uruguayan economy grew 2.6% in constant terms, on average, the forest sector grew 7.6% on average, with peaks in 2007-2008 and 2013-2015. In 2016, the forest production was allocated to exports (46.76%), which surpassed intermediate use (43.05%) after initial operations of the second pulp mill in the country. Furthermore, forest exports represented 10.5% of the country's total exports of goods and services, showing an exporter profile.

Keywords

• value added
• uruguay
• gdp
• forest industry
• economic impact