The Economy Of Bolivia. A brief sketch of the modern economy of Bolivia

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 The Economy Of Bolivia. A brief sketch of the modern economy of Bolivia

Bolivia is a resource rich country with strong growth attributed to captive markets for natural gas exports. However, the country remains one of the least developed countries in Latin America because of state-oriented policies that deter investment and growth. Following a disastrous economic crisis during the early 1980s, reforms spurred private investment, stimulated economic growth, and cut poverty rates in the 1990s. The period 2003-05 was characterized by political instability, racial tensions, and violent protests against plans - subsequently abandoned - to export Bolivia's newly discovered natural gas reserves to large Northern Hemisphere markets. In 2005, the government passed a controversial hydrocarbons law that imposed significantly higher royalties and required foreign firms then operating under risk-sharing contracts to surrender all production to the state energy company in exchange for a predetermined service fee. The global recession slowed growth, but Bolivia recorded the highest growth rate in South America during 2009. High commodity prices since 2010 sustained rapid growth and large trade surpluses. However, a lack of foreign investment in the key sectors of mining and hydrocarbons, along with conflict among social groups pose challenges for the Bolivian economy. President Evo MORALES passed an investment law and promised not to nationalize additional industries in an effort to improve Bolivia’s investment climate.

GDP (purchasing power parity):

$70.38 billion (2014 est.)

$66.52 billion (2013 est.)

$62.3 billion (2012 est.)

note: data are in 2014 US dollars

country comparison to the world: 94

GDP (official exchange rate):

$34.08 billion (2014 est.)

GDP - real growth rate:

5.8% (2014 est.)

6.8% (2013 est.)

5.2% (2012 est.)

country comparison to the world: 39

GDP - per capita (PPP):

$6,200 (2014 est.)

$6,000 (2013 est.)

$5,800 (2012 est.)

note: data are in 2013 US dollars

country comparison to the world: 158

Gross national saving:

23.1% of GDP (2014 est.)

23.9% of GDP (2013 est.)

25.7% of GDP (2012 est.)

country comparison to the world: 55

GDP - composition, by end use:

household consumption: 58.8%

government consumption: 13.9%

investment in fixed capital: 20.3%

investment in inventories: 0.7%

exports of goods and services: 46%

imports of goods and services: -39.7%

(2014 est.)

GDP - composition, by sector of origin:

agriculture: 13.1%

industry: 38.9%

services: 48% (2014 est.)

Agriculture - products:

soybeans, quinoa, Brazil nuts, sugarcane, coffee, corn, rice, potatoes, coca

Industries:

mining, smelting, petroleum, food and beverages, tobacco, handicrafts, clothing, jewelry

Industrial production growth rate:

6% (2014 est.)

country comparison to the world: 38

Labor force:

4.881 million (2014 est.)

country comparison to the world: 84

Labor force - by occupation:

agriculture: 32%

industry: 20%

services: 47.9% (2009 est.)

Unemployment rate:

7.3% (2014 est.)

7.4% (2013 est.)

note: data are for urban areas; widespread underemployment

country comparison to the world: 81

Population below poverty line:

45%

note: based on percent of population living on less than the international standard of $2/day (2011 est.)

Household income or consumption by percentage share:

lowest 10%: 0.8%

highest 10%: 33.6% (2012 est.)

Distribution of family income - Gini index:

46.6 (2012)

57.9 (1999)

country comparison to the world: 29

Budget:

revenues: $16.59 billion

expenditures: $16.76 billion (2014 est.)

Taxes and other revenues:

48.7% of GDP (2014 est.)

country comparison to the world: 17

Budget surplus (+) or deficit (-):

-0.5% of GDP (2014 est.)

country comparison to the world: 52

Public debt:

35.3% of GDP (2014 est.)

35.6% of GDP (2013 est.)

note: data cover general government debt, and includes debt instruments issued by government entities other than the treasury; the data include treasury debt held by foreign entities; the data include debt issued by subnational entities

country comparison to the world: 111

Fiscal year:

calendar year

Inflation rate (consumer prices):

5.4% (2014 est.)

5.7% (2013 est.)

Central bank discount rate:

4.5% (31 December 2013)

4% (31 december 2012)

country comparison to the world: 81

Commercial bank prime lending rate:

9.7% (31 December 2014 est.)

11.05% (31 December 2013 est.)

country comparison to the world: 87

Stock of narrow money:

$8.362 billion (31 December 2014 est.)

$7.26 billion (31 December 2013 est.)

country comparison to the world: 84

Stock of broad money:

$20.19 billion (31 December 2013 est.)

$17.4 billion (31 December 2012 est.)

country comparison to the world: 86

Stock of domestic credit:

$15.51 billion (31 December 2014 est.)

$11.82 billion (31 December 2013 est.)

country comparison to the world: 91

Market value of publicly traded shares:

$9.684 billion (31 December 2013)

$7.689 billion (31 December 2012)

$6.089 billion (31 December 2011)

country comparison to the world: 75

Current account balance:

$1.133 billion (2014 est.)

$1.173 billion (2013 est.)

country comparison to the world: 47

Exports:

$12.34 billion (2014 est.)

$11.51 billion (2013 est.)

country comparison to the world: 89

Exports - commodities:

natural gas, mineral ores, gold, soybeans and soy products, tin

Exports - partners:

Brazil 34%, Argentina 20%, US 10%, Colombia 5%, Peru 5% (2013)

Imports:

$9.513 billion (2014 est.)

$9.347 billion (2013 est.)

country comparison to the world: 106

Imports - commodities:

machinery, petroleum products, vehicles, iron and steel, plastics

Imports - partners:

Brazil 17%, China 13%, US 13%, Argentina 11%, Peru 6%, Japan 5% (2013)

Reserves of foreign exchange and gold:

$15.38 billion (31 December 2014 est.)

$14.43 billion (31 December 2013 est.)

country comparison to the world: 70

Debt - external:

$8.073 billion (31 December 2014 est.)

$7.734 billion (31 December 2013 est.)

country comparison to the world: 108

Stock of direct foreign investment - at home:

$10.56 billion (31 December 2013)

$8.809 billion (31 December 2012)

country comparison to the world: 88

Stock of direct foreign investment - abroad:

$0 (31 December 2013 est.)

$0 (31 December 2012 est.)

country comparison to the world: 100

Exchange rates:

bolivianos (BOB) per US dollar -

6.958 (2014 est.)

6.96 (2013 est.)

6.94 (2012 est.)

6.9875 (2011 est.)

7.0167 (2010 est.)