Bolivia Economy Profile 2009

Economy - overview

Bolivia is one of the poorest and least developed countries in Latin America. 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 early 2008, higher earnings for mining and hydrocarbons exports pushed the current account surplus to 9.4% of GDP and the government's higher tax take produced a fiscal surplus after years of large deficits. Private investment as a share of GDP, however, remains among the lowest in Latin America, and inflation remained at double-digit levels in 2008. The decline in commodity prices in late 2008, the lack of foreign investment in the mining and hydrocarbon sectors, and the suspension of trade benefits with the United States will pose challenges for the Bolivian economy in 2009.

GDP (purchasing power parity)

$43.27 billion (2008 est.)
$40.79 billion (2007 est.)
$38.99 billion (2006 est.)
note: data are in 2008 US dollars

GDP (official exchange rate)

$17.41 billion (2008 est.)

GDP - real growth rate

6.1% (2008 est.)
4.6% (2007 est.)
4.8% (2006 est.)

GDP - per capita (PPP)

$4,500 (2008 est.)
$4,300 (2007 est.)
$4,200 (2006 est.)
note: data are in 2008 US dollars

GDP - composition by sector

agriculture: 11.3%
industry: 36.9%
services: 51.8% (2008 est.)

Population below poverty line

60% (2006 est.)

Labor force

4.454 million (2008 est.)

Labor force - by occupation

agriculture: 40%
industry: 17%
services: 43% (2006 est.)

Unemployment rate

7.5% (2008 est.)
7.5% (2007 est.)
note: data are for urban areas; widespread underemployment

Household income or consumption by percentage share

lowest 10%: 0.5%
highest 10%: 44.1% (2005)

Distribution of family income - Gini index

59.2 (2006)
44.7 (1999)

Investment (gross fixed)

18% of GDP (2008 est.)

Budget

revenues: $8.039 billion
expenditures: $7.5 billion (2008 est.)

Public debt

41% of GDP (2008 est.)
46.3% of GDP (2007 est.)

Inflation rate (consumer prices)

14% (2008 est.)
8.7% (2007 est.)

Central bank discount rate

13% (31 December 2008)
6.5% (31 December 2007)

Commercial bank prime lending rate

11.46% (31 December 2008)
12.86% (31 December 2007)

Stock of money

$NA (31 December 2008)
$3.032 billion (31 December 2007)

Stock of quasi money

$NA (31 December 2008)
$4.729 billion (31 December 2007)

Stock of domestic credit

$NA (31 December 2008)
$4.759 billion (31 December 2007)

Industries

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

Industrial production growth rate

10.6% (2008 est.)

Electricity - production

5.668 billion kWh (2007 est.)

Electricity - production by source

fossil fuel: 44.4%
hydro: 54%
nuclear: 0%
other: 1.5% (2001)

Electricity - consumption

5.092 billion kWh (2007 est.)

Electricity - exports

0 kWh (2007 est.)

Electricity - imports

0 kWh (2007 est.)

Oil - production

61,790 bbl/day (2007 est.)

Oil - consumption

31,500 bbl/day (2007 est.)

Oil - imports

8,600 bbl/day (2007 est.)

Oil - exports

18,500 bbl/day (2007 est.)

Oil - proved reserves

465 million bbl (1 January 2008 est.)

Natural gas - production

14.7 billion cu m (2007 est.)

Natural gas - consumption

3 billion cu m (2007 est.)

Natural gas - exports

11.7 billion cu m (2007 est.)

Natural gas - imports

0 cu m (2007 est.)

Natural gas - proved reserves

750.4 billion cu m (1 January 2008 est.)

Current Account Balance

$2.368 billion (2008 est.)
$1.984 billion (2007 est.)

Agriculture - products

soybeans, coffee, coca, cotton, corn, sugarcane, rice, potatoes; timber

Exports

$6.494 billion (2008 est.)
$4.49 billion (2007 est.)

Exports - commodities

natural gas, soybeans and soy products, crude petroleum, zinc ore, tin

Exports - partners

Brazil 60%, US 8.3%, Japan 4.1% (2008)

Imports

$4.674 billion (2008 est.)
$3.24 billion (2007 est.)

Imports - commodities

petroleum products, plastics, paper, aircraft and aircraft parts, prepared foods, automobiles, insecticides, soybeans

Imports - partners

Brazil 27.8%, Argentina 14.8%, US 10.9%, Chile 9.9%, Peru 7.4%, China 5.1% (2008)

Reserves of foreign exchange and gold

$7.722 billion (31 December 2008 est.)
$5.318 billion (31 December 2007 est.)

Debt - external

$5.931 billion (31 December 2008)
$5.385 billion (31 December 2007)

Stock of direct foreign investment - at home

$6.88 billion (31 December 2004)

Stock of direct foreign investment - abroad

$NA

Market value of publicly traded shares

$NA (31 December 2008)
$2.263 billion (31 December 2007)
$2.223 billion (31 December 2006)

Economic aid - recipient

$582.9 million (2005 est.)

Currency (code)

BOB

Currency (code)

boliviano (BOB)

Exchange rates

bolivianos (BOB) per US dollar - 7.253 (2008 est.), 7.8616 (2007), 8.0159 (2006), 8.0661 (2005), 7.9363 (2004)

Fiscal year

calendar year