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Bolivia Bolivia

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Bolivia – Quick View
ECR score37.76 (Mar 2011)
ECR rank106 (Mar 2011)
Economic
GDP (2009)USD 17 billion
GNI per capita PPP (2010)USD 4,357
FDI inflow (Q3 2010)USD 409.9 million
Inflation (December 2010)1.76%
Central bank assets (September 2010)USD 10,996 million
Unemployment rate (2010)6.5%
Government deficit (2010E)USD 0.53 billion
Tax revenue28.5% of GDP
Political
Government typeRepublic
Recent political crisisNA
Economic freedom score (2011)147th
Freedom of information score (2010)103rd
Corruption perception index (2010)110th
Structural
Birth rate (2008)27 per ‘000
Population balanceUnder 14 – 36.2%
Population balanceAbove 60 males – 6.4%
Life expectancy yearsMale 63.4 years
Life expectancy yearsFemale 67.7 years
Mortality rate45.6 per ‘000
Literacy rate90.7%
Internet access10.4%

[Top] Economic Overview

Bolivia has an industry-based economy. The country’s major economic sectors include agriculture, forestry, hunting and fishing, manufacturing and civil services.

Gross Domestic Product

The country’s Gross Domestic Product (GDP) at market prices shows steady growth from 2001 to 2009. The GDP at market prices in 2009 is projected to be BOB 121.73 billion, an increase of 0.86% over the previous year.

 

Bolivia GDP

(Source: ine.gob.bo) P- Projected

The GDP at constant prices is projected to be BOB 31.29 billion, an increase of 3.36%.

Real GDP growth rate

Real GDP growth of Bolivia was recorded at a high of 6.15% in 2008 and decreased to 3.36% in 2009.

 

 

Bolivia GDP Growth Rate

Gross National Income per capita, PPP

The nation’s gross national income (GNI) per capita, PPP in 2010 was USD 4,357 compared to USD 4,678 in 2005.

 

 

Bolivia GNI per capita, PPP

(Source: UNDP)

Income Tax Rate

The highest tax rate on individual income in Bolivia is 13%.

(Source: heritage.org)

Corporate tax

Standard corporate tax in Bolivia is 25%.

(Source: heritage.org)

Value added tax in Bolivia is 13% whereas exports are not taxed.

 

Tax contribution

Total tax rate (% profit)

Transactions tax

61

Corporate income tax

17.8

Property transfer tax

1.8

Property tax

1.1

Municipal license tax

0.6

Vehicle tax

0.1

Social security contributions

15.5

(Source: doingbusiness.org)


Inflation Rate

The inflation rate in Bolivia registered at 1.76% in December 2010 compared to 0.23% in December 2009.

 

Bolivia Inflation Rate

(Source: bcb.gob)

FDI Inflow

The inflow for 2009 registered at USD 687 million with a decline of 47.23% over the previous year. The total FDI in the country in the first six months of 2010 amounted to USD 380 million compared to USD 361 million in the corresponding period of 2009.

 

 

Bolivia FDI

(Source: bcb.gob)


Portfolio Investment

Portfolio Investment for the first three quarters of 2010 is projected to be USD 147.4 million.

 

Bolivia Portfolio Investment

 

 

(Source: bcb.gob)

Banking sector assets


Bolivian banks assets, September 2010

Assets

Amounts (BOB)

Reserve Assets

63,245,607,226.12

Other International Assets

4,591,997,529.53

Credits to nonfinancial sector

2,364,756,388.87

Credit to financial sector

862,513,861.76

Other active internal

7,738,835,782.20

Total Assets

78,803,710,788.48

(Source: bcb.gob.bo)

[Top] Financial Indicators & Government Financial

Consumer Price Index

The country’s Consumer Price Index (CPI) in December 2010 was 124.49 compared to 116.15 in December 2009.

 

Bolivia Consumer Price Index

(Source: bcb.gob)

Interest rate

Weekly Interest Rate % (Banking and Non bank -Till February 2011)

 

National Currency

Foreign Currency

30 Days Deposit

0.05

0.05

60 Days Deposit

0.41

0.05

90 Days Deposit

0.06

0.07

180 Days Deposit

0.09

0.08

360 Days Deposit

0.16

0.15

720 Days Deposit

0.23

0.21

1080 Days Deposit

-

0.5

(Source: bcb.gob)

 

Lending Rate, 2010 (%)

 

Nominal Interest Rate

Effective Interest Rate

Banks

9.23

9.98

Co-operative

16.21

17.52

Financial Funds

22.28

25.44

Mutual

6.66

7.29

(Source: bcb.gob)

 

 

Deposit Rate, 2010 (%)

 

Nominal Interest Rate

Effective Interest Rate

Banks

0.47

0.47

Co-operative

0.82

0.81

Financial Funds

0.92

0.91

Mutual

0.42

0.42

(Source: bcb.gob)

Money supply

Money Supply (BOB ‘000)

 

December 2010

December 2009

December 2008

M1

31,889,948

24,918,277

21,718,612

M2

45,856,080

36,648,666

32,672,600

M3

57,454,428

44,810,772

37,751,037

M4

60,415,125

48,994,246

42,618,219

(Source: bcb.gob)

Government Expenditure

The total government expenditure in 2010 was estimated at BOB 44.93 billion or 33.6% of the country’s GDP.

 

 

Bolivia Government Expenditure

(Source: IMF) E- Estimated

Public Debt

The country’s total domestic debt in 2009 amounted to BOB 29,602.1 million. The country’s domestic debt has been on the rise and has almost tripled in the last decade.


Bolivia Public Debt

(Source: economiayfinanzas)

Official exchange rate

USD per BOB exchange rate for sale in 2010 valued at 7.06 and for buy valued at 6.96. The exchange rate of Bolivia shows a decrease from 2008 to 2010.

 

Bolivia Exchange Rate

(Source:bcb.gob)

 

Government finances

Fiscal balance

The country’s fiscal balance has been decreasing since 2006. In 2010, the country is estimated to record a fiscal deficit for the third consecutive year.

 

Bolivia Fiscal Balance

(Source: IMF) E- Estimated

Total Revenue

The country’s total revenue was on the increase till 2008. In 2009, the country’s revenue dipped to BOB 38.05 billion from BOB 39.53 billion in 2008. The country’s revenue in 2009 was 31.3% of GDP.

 

Bolivia Total Government Revenue

(Source:IMF) E- Estimated

Tax Revenue

The country’s tax revenue is approximately 28.5% of GDP. (Source: heritage.org)

Current Account Balance

The current account balance of the country in 2010 is estimated at 6.5% of GDP.

 

Bolivia Current Account Balance

(Source:IMF)

Balance of Payments

Balance of Payments (USD million)

 

2010 P (till Q3)

2009 P

2008

Current Account

690.2

813.5

1,992.7

Capital and Financial account

560.3

-28.7

378.3

Errors and Omissions

-884.1

-459.6

3.1

Balance of Payments

366.4

325.2

2,374

(Source:bcb.gob)

[Top] Labour Force and Employment Overview

Labour Force

The labour force in Bolivia was recorded at 4.82 million in 2010, an increase of 15.77% over 2005.

 

Bolivia Labour Force

(Source:eclac)

Labour force participation rate

In 2010, the labour participation rate for the population above 15 years of age was recorded at 72%. The labour force participation rate for males and females was 81.7% and 62.7% respectively.

(Source: eclac)

Unemployment Rate

The unemployment rate in the country was registered at 6.5% in 2010 compared to 7.9% in 2009.

 

Bolivia Unemployment Rate

(Source:eclac)

Minimum wage

The minimum average monthly wage in Bolivia is BOB 679.5 since May 2010. In May 2010, the minimum wage in the public and private sector increased by 5%.

(Source: eclac)

Level of Unionisation

The Bolivian Workers Central group or COB is the largest trade union in the country. The COB covers all trade unions in Bolivia including workers in the mining, manufacturing and energy industries.

(Source: Reuters)

[Top] Political Stability

Government stability

Bolivia has a republican system of government. The government functions through three branches, namely the executive, legislative and judiciary.

The executive branch includes the President and the Vice-President. The President is the head of the government and is also the head of state.

The legislative power is vested with the parliament. The parliament is bicameral; the two chambers are the Chamber of Deputies and the Chamber of Senators. The Chamber of Deputies includes 130 members elected for a five year term. The Chamber of Senators comprises of 36 members directly elected for a term of five years.

(Source: IPU)

Regulatory environment

The country’s economic freedom score is 50, making its economy the 147th freest in the 2011 Index of Economic Freedom. Bolivia ranks 25th out of 29 regional countries in the South and Central America/ Caribbean region. Bolivia’s overall score is lower than the global and regional averages.


Bolivia Economic Freedom Indices

(Source: heritage.org)

Corruption perception

The Corruption Perceptions Index (CPI) is a survey to measure the perceived level of corruption across countries worldwide. Bolivia is ranked 110th on the index indicating a high level of corruption in public departments.

The CPI ranking of the country improved from 120th in 2009 to 110th in 2010 with a score of 2.8 which indicates that the level of corruption has decreased in the country.

(Source: transparency.org)

Freedom of Information

World Press Freedom Index 2010 ranks Bolivia at the 103rd position with a score of 28.13, indicating that media in Bolivia is restricted.

The country’s newspaper readership levels are low due to the low literacy rate in the country. Major newspapers in Bolivia include:

  • La Razon
  • Los Tiempos
  • El Diario
  • El Deber
  • El Mundo
  • Correo del Sur

(Source:rsf.org,BBC)

Judicial system

The Bolivian judicial system consists of the Supreme Court, district courts and provincial and legal courts. The Supreme Court is the highest court of justice, consisting of the President and eleven judges. Judges are elected by the Chamber of Deputies for a ten year term.

[Top] Demographic Overview

Population

The total population of Bolivia for the year 2009 was recorded at 9.86 million.

(Source: worldbank.org)

 

Bolivia Population by Gender

 

Gender Ratio

The gender ratio in the country is balanced i.e. there are about 99.5 males for every 100 females in the country.  

(Source: UN, worldbank.org)

In 2009, the population in Bolivia below 14 years old accounted for 36.2% of the total population. In the same year, 7.7% women and 6.4% men (% of total population) were aged 60 years and above.

The country’s crude birth rate in 2008 was 27 per 1,000 people.

(Source: World Bank)

Mortality Rate

The mortality rate of infants (per 1,000 live births) registered at 45.6 in the year 2010.

Average life expectancy rate

The life expectancy in the period 2005-2010 for males and females was recorded at 63.4 years and 67.7 years respectively.

Migration and Urbnisation

International migrant stock till mid 2010 was recorded at 145,800 individuals or 1.5% of the entire population.

(Source: UN)

The country’s urban population growth rate from 2005 to 2010 was 2.5% and the rural population growth rate in the same period was 0.4%. The total population growth rate was 1.8%.

(Source: UN)

Ethnicity

There are about 40 ethnic groups in Bolivia classified on the basis of linguistic groups. The major ethnic groups in the country are Quechua and Aymara. Other ethnic groups include mestizo and Europeans.

(Source: state.gov)

Human Development Index

The country ranks 95th out of 182 countries on the Human Development Index 2010 conducted by the United Nations. The HDI provides a composite measure of three dimensions of human development: living a long and healthy life (measured by life expectancy), being educated (measured by adult literacy and gross enrolment in education).

(Source: UNDP)

[Top] Soft Infrastructure

Education and literacy rate

The adult literacy rate in Bolivia for the population aged above 15 years for both sexes is estimated at 90.7%.

The primary-secondary gross enrolment ratio of women was 95 (per 100 women) and for men was recorded at 96.2 (per 100 men) in the period 2005-2008.

Expenditure on education is about 6.3% of GDP.

(Source: UN, UNDP)

Healthcare resources

The country’s health system includes public and private services along with the social security system.  The Ministry of Health and Social Welfare (MSPS) is responsible for regulation, policies and health standards.

About 48% of the population use services of the Basic Health Insurance (BHI) system.The private sector covers about 10% of the population and 22% are covered by the social security funds. Approximately 25% of the population does not have access to basic health services.

The public expenditure on health in Bolivia is about 3.4% of GDP.

(Source: paho, UNDP)

[Top] Hard Infrastructure

The mass public transport in the country is primarily dependent on roadways. Buses and mini-buses operated by private companies provide transport services.

Ports

There are two ports in Bolivia - Puerto Aquirre and Puerto Quijarro. Puerto Aquirre is a small river port whereas Puerto Quijarro is an inland port.

(Source:world port source)

Airports

There are about 40 airports in the country. Some of the major airports are:

 

Town

Airport name

Runway length

Charana

Charana

6500 ft

Cobija

Cobija

6500 ft

Cochabamba

Jorge Wilsterman

12400 ft

La Paz

El Alto Intl

13100 ft

Monteagudo

Monteagudo

6500 ft

Oruro

Juan Mendoza

7700 ft

Potosi

Potosi

9200 ft

Puerto Suarez

Salvador Ogaya

6500 ft

Rurrenabaque

Rurrenabaque

7000 ft

San Joaquin

San Joaquin

6500 ft

San Matias

San Matias

6500 ft

Santa Cruz

El Trompillo

9100 ft

Santa Cruz

Viru Viru Intl

11400 ft

Sucre

Juana Azurduy De Padilla

9400 ft

Tarija

Capt Oriel Lea Plaza

10000 ft

Trinidad

Jorge Henrich Arauz

6000 ft

Yacuiba

Yacuiba

6000 ft

(Source: Air charter world)

Telecommunications networks

In 2008, the total number of internet users in the country was 1 million or 10% of total population.

 

 

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