Batlle's five-year term was marked by economic recession and uncertainty, first with the 1999 devaluation of the Brazilian real, then with the outbreaks of foot-and-mouth disease (aftosa) in Uruguay's key beef sector in 2001, and finally with the political and economic collapse of Argentina. Unemployment rose to close to twenty percent, real wages fell, the peso was devalued and the percentage of Uruguayans in poverty reached almost forty percent. These worsening economic conditions played a part in turning public opinion against the free market economic policies adopted by the Batlle administration and its predecessors, leading to popular rejection through plebiscites of proposals for privatization of the state petroleum company in 2003 and of the state water company in 2004.
The majority 80% of these are Spaniards and Italians, followed by the French, Germans, Portuguese, British (English or Scots), Armenians, Maltese, Irish, Swiss, Russians, Poles, Croats, Bulgarians, Hungarians, Ukrainians, Lithuanians, Estonians, Latvians, Swedish, Danish, Dutch, Belgians, Austrians, Greeks, Scandinavians and Turkish. There are also smaller numbers of Georgian and Lebanese people.
Approximately 6% of the population is Mestizo, while Afro-Uruguayans form 4% and about 1% or 2% are of Asian descent, mostly Lebanese/Syrian Arab and Chinese or Japanese ancestry.
Uruguay has an impressive legacy of artistic and literary traditions, especially for its small size. The contribution of its alternating conquerors and diverse immigrants has resulted in native traditions that integrate this diversity. Uruguay has centuries old remains, fortresses of the colonial era. Its cities have a rich architectural heritage and an impressive number of writers, artists, and musicians. Uruguayan tango is the form of dance that originated in the neighborhoods of Montevideo, Uruguay towards the end of the 19th century. Tango, candombe, and murga are the three main styles of music.
A prominent exponent of Afro-Uruguayan art is abstract painter and sculptor Carlos Páez Vilaró. He drew from both Timbuktu and Mykonos to create his best-known work: Casapueblo. His home, hotel and atelier near Punta del Este, Casapueblo is a “livable sculpture,” and draws thousands of visitors from around the world.
Many of the European immigrants arrived in Uruguay in the late 19th century and have heavily influenced the architecture and culture of Montevideo and other major cities. For this reason, Montevideo and life within the city are very reminiscent of Western Europe.
Uruguayans are known to eat a lot of meat, such as asado. The parrillada (beef platter), chivito (a substantial steak sandwich), and pasta are the national dishes. Football is the most popular Sport in Uruguay
In October 2010, the unemployment rate was 6.2%. From 2002 to 2010, Uruguay's economy grew every year, 8 years running of growth. Uruguay's GDP expanded by 10.4% for the first half of 2010.