Bolivia Economy - 2022

GEOGRAPHICAL NAMES 

Economic overview

Bolivia is a resource rich country with strong growth attributed to captive markets for natural gas exports – to Brazil and Argentina. However, the country remains one of the least developed countries in Latin America because of state-oriented policies that deter investment.

 

Following an economic crisis during the early 1980s, reforms in the 1990s spurred private investment, stimulated economic growth, and cut poverty rates. 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 2005-06, the government passed hydrocarbon laws 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 laws engendered much public debate. High commodity prices between 2010 and 2014 sustained rapid growth and large trade surpluses with GDP growing 6.8% in 2013 and 5.4% in 2014. The global decline in oil prices that began in late 2014 exerted downward pressure on the price Bolivia receives for exported gas and resulted in lower GDP growth rates - 4.9% in 2015 and 4.3% in 2016 - and losses in government revenue as well as fiscal and trade deficits.

 

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. In 2015, President Evo MORALES expanded efforts to court international investment and boost Bolivia’s energy production capacity. MORALES passed an investment law and promised not to nationalize additional industries in an effort to improve the investment climate. In early 2016, the Government of Bolivia approved the 2016-2020 National Economic and Social Development Plan aimed at maintaining growth of 5% and reducing poverty.

Real GDP (purchasing power parity)

$92.59 billion (2020 est.)

$100.45 billion (2019 est.)

$98.27 billion (2018 est.)

note: data are in 2017 dollars

Real GDP growth rate

2.22% (2019 est.)

4.23% (2018 est.)

4.19% (2017 est.)

Real GDP per capita

$7,900 (2020 est.)

$8,700 (2019 est.)

$8,700 (2018 est.)

note: data are in 2017 dollars

GDP (official exchange rate)

$40.822 billion (2019 est.)

Inflation rate (consumer prices)

1.8% (2019 est.)

2.2% (2018 est.)

2.8% (2017 est.)

Credit ratings

Fitch rating: B (2020)

Moody's rating: B2 (2020)

Standard & Poors rating: B+ (2020)

note: The year refers to the year in which the current credit rating was first obtained.

GDP - composition, by sector of origin

agriculture: 13.8% (2017 est.)

industry: 37.8% (2017 est.)

services: 48.2% (2017 est.)

GDP - composition, by end use

household consumption: 67.7% (2017 est.)

government consumption: 17% (2017 est.)

investment in fixed capital: 21.3% (2017 est.)

investment in inventories: 3.8% (2017 est.)

exports of goods and services: 21.7% (2017 est.)

imports of goods and services: -31.3% (2017 est.)

Agricultural products

sugar cane, soybeans, potatoes, maize, sorghum, rice, milk, plantains, poultry, bananas

Industries

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

Industrial production growth rate

2.2% (2017 est.)

Labor force

5.719 million (2016 est.)

Labor force - by occupation

agriculture: 29.4%

industry: 22%

services: 48.6% (2015 est.)

Unemployment rate

4% (2017 est.)

4% (2016 est.)

note: data are for urban areas; widespread underemployment

Youth unemployment rate (ages 15-24)

total: 16.1%

male: 15.7%

female: 16.6% (2020 est.)

Population below poverty line

37.2% (2019 est.)

Gini Index coefficient - distribution of family income

42.2 (2018 est.)

57.9 (1999)

Household income or consumption by percentage share

lowest 10%: 0.9%

highest 10%: 36.1% (2014 est.)

Budget

revenues: 15.09 billion (2017 est.)

expenditures: 18.02 billion (2017 est.)

Budget surplus (+) or deficit (-)

-7.8% (of GDP) (2017 est.)

Public debt

49% of GDP (2017 est.)

44.9% of GDP (2016 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

Taxes and other revenues

39.9% (of GDP) (2017 est.)

Fiscal year

calendar year

Current account balance

-$2.375 billion (2017 est.)

-$1.932 billion (2016 est.)

Exports

$7.55 billion (2020 est.)

$10.26 billion (2019 est.)

$10.35 billion (2018 est.)

note: Data are in current year dollars and do not include illicit exports or re-exports.

Exports - partners

Argentina 16%, Brazil 15%, United Arab Emirates 12%, India 10%, United States 6%, South Korea 5%, Peru 5%, Colombia 5% (2019)

Exports - commodities

natural gas, gold, zinc, soybean oil and soy products, tin, silver, lead (2019)

Imports

$8.27 billion (2020 est.) note: data are in current year dollars

$11.95 billion (2019 est.) note: data are in current year dollars

$12.44 billion (2018 est.) note: data are in current year dollars

Imports - partners

Brazil 22%, Chile 15%, China 13%, Peru 11%, Argentina 8%, United States 7% (2017)

Imports - commodities

cars, refined petroleum, delivery trucks, iron, buses (2019)

Reserves of foreign exchange and gold

$10.26 billion (31 December 2017 est.)

$10.08 billion (31 December 2016 est.)

Debt - external

$12.81 billion (31 December 2017 est.)

$7.268 billion (31 December 2016 est.)

Exchange rates

bolivianos (BOB) per US dollar -

6.91 (2020 est.)

6.91 (2019 est.)

6.91 (2018 est.)

6.91 (2014 est.)

6.91 (2013 est.)

NOTE: The information regarding Bolivia on this page is re-published from the 2022 World Fact Book of the United States Central Intelligence Agency and other sources. No claims are made regarding the accuracy of Bolivia 2022 information contained here. All suggestions for corrections of any errors about Bolivia 2022 should be addressed to the CIA or the source cited on each page.