The economy of Uruguay is characterized by an export-oriented agricultural sector and a well-educated workforce, along with high levels of social spending. officially the Oriental Republic of Uruguay, is a sovereign state in the southeastern region of South America. Uruguay is geographically the second-smallest nation in South America. Uruguay is ranked first in Latin America in democracy, peace, low perception of corruption, e-government, and is first in South America when it comes to press freedom, size of the middle class and prosperity. It tops the rank of absence of terrorism, a unique position within South America. It ranks second in the region on economic freedom, income equality, per-capita income and inflows of FDI.