The chaotic geopolitical environment has created unprecedented global anxiety and has also led to disruptive patterns of migration. More than 18% of U.S. adults last year were diagnosed with depression or were in treatment for depression, according to the Gallop National Health and Well-Being Index as of September 2025, which is dramatically greater than the 10.5% in 2015. It has reached such an extreme that 29% of those who now disapprove of the country’s leadership would take the extreme measure to permanently relocate outside of the country.
Percentage Who Would Move Permanently Away from the U.S.
Source: Gallup Survey (November 2025)
With the invasion of Venezuela, and now the invasions of Iran and the lesser covered invasion of Ecuador (“joint lethal kinetic operations” aka Operation Southern Spear), it was a fascinating time to travel in Latin America. The oasis in all of this turmoil is Uruguay, often referred to as the “Switzerland of South America.”
A country of just over three million people and slightly smaller than Oklahoma nestled between Brazil and Argentina, Uruguay almost appears out of place. The democratic government is stable and well-functioning. The World Bank’s Control of Corruption Index ranked Uruguay an impressive 96% as compared to the United States score of 90% (this was as of 2023 so these scores have undoubtedly changed). The country is a recognized leader in environmental regulation. There was even one 2026 Winter Olympian from Uruguay, Alpine Skier Nicolas Pirozzi, which further underscores the charm and determination of this small country.
The U.S. invasion of Venezuela (aka Operation Absolute Resolve) appears to have had a modest impact on regional affairs and has left Uruguay relatively unscathed. Goldman Sachs recently forecasted 2026 GDP growth for Latin America to be 1.9% with inflation at 4.3%. Shockingly, the Venezuelan economy declined by 80% over the last dozen years to be now equivalent to the Uruguayan economy of approximately $80 billion. The government deficit in 2025 was just 4.1% of GDP.
Clearly, the global commodity bull market has recently benefited many of the regional economies in Latin America. The recent International Monetary Fund Uruguayan GDP growth estimate for 2026 of 2.4% compares well to the seven largest Latin American countries.
Projected GDP Growth for 2026
Source: Goldman Sachs
While the spillover effects from the issues in Venezuela (and now Cuba) appear to be somewhat muted – so far – the other significant benefit for developing country economies has been the global rotation of capital away from the U.S. concurrent with the weakening dollar. The outflows have been nothing short of dramatic.
Share of U.S. in Allocation of Global Equity Flows
Source: BofA Global Economics Research
The knock-on effects on the Latin American venture capital industry have been significant as well. While exits and the lack of liquidity also plague this region, the level of new investment activity in 2025 was an encouraging $4.1 billion across 681 deals. This was an improvement over the $3.6 billion invested in 2024, but still quite a bit below the $17.4 billion invested in 2021, according to data from Cuantico VP. Perhaps not surprisingly, the fintech sector was the most active, capturing 61% of total investment and 29% of all deals.
Venture Capital Investment Activity in Latin America
Source: Cuantico VP Market Intelligence Platform
Notwithstanding that Uruguay ranked only #68 on the World Intellectual Property Organization’s Global Innovation Index in 2025, there are 26 venture capital firms listed in the country’s venture capital directory published by Asociacion Uruguaya de Capital Privado. While the 2025 data recorded only $11.8 million invested in just a dozen deals, which dipped slightly from the $12.4 million in 2024, Uruguayan venture capitalists scored well on the Venture Capital Efficiency Index, which measures venture capital investment as percent of country GDP. The total venture capital industry in Uruguay is estimated to be approximately $40 million.
Venture Capital Efficiency Index
Source: Cuantico VP Market Intelligence Platform
Like most regions of the world, changing demographics risks playing havoc with traditional industries given aging populations and poorly funded social safety nets. A recent study by the World Economic Forum determined that Latin America had the slowest regional annual productivity growth over the past 25 years at 0.4%, and in fact, was negative over the last ten years. Fortunately, the analysis goes on to conclude that the impact of AI could lift productivity growth by 1.9% to 2.3%, generating between $1.1 – $1.7 trillion of economic value in the region.
Uruguay has a universal health system with both public and private providers and accounts for approximately 9% of GDP. Mortality rates are meaningfully lower than other Latin American countries with life expectancy rate of 78.3 years, the second highest behind Chile at 81.2 years. The President of Uruguay, Yamandu Orsi, recently moved the retirement age from 60 to 65 for those born before 1977 in anticipation of these demographic changes.
The healthcare system is expected to be under some pressure as the population continues to age, which accounts for the significant and concerted investments in digital health. Even with the second highest proportion of doctors per 1,000 people in the region (4.6), the country launched several foundational programs such as a nationwide digital prescription system, centralized digital diagnostic imaging network, and a national electronic health record platform.
Population Pyramid: 2000 – 2025
Source: Pan American Health Organization
Swirling around the angst of immigration from Latin America, there is an emerging irony that an increasing number of people are looking to leave the U.S. Here is to Uruguay continuing to be an oasis in this roiling ocean. The country ranked #28 in the World Happiness Report with a score of 6.66 out of 10, the third highest in Latin America. The highest country was Finland at 7.74; the U.S. was #24 at 6.72.
Serenity indeed contributes to good health…
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