Bolivia Economy 2007

Economy - overview:
Bolivia, long one of the poorest and least developed Latin American countries, reformed its economy after suffering a disastrous economic crisis in the early 1980s. The reforms spurred real GDP growth, which averaged 4% in the 1990s, and poverty rates fell. Economic growth, however, lagged again beginning in 1999 because of a global slowdown and homegrown factors such as political turmoil, civil unrest, and soaring fiscal deficits, all of which hurt investor confidence. In 2003, violent protests against the pro-foreign investment economic policies of ex-President SANCHEZ DE LOZADA led to his resignation and the cancellation of plans to export Bolivia's newly discovered natural gas reserves to large northern hemisphere markets. In 2005, the government passed a controversial natural gas law that imposed significantly higher taxes on the oil and gas firms and required production firms to sign new operating contracts, which were completed in October 2006. Bolivian officials are in the process of revamping the defunct state-owned oil company and acquiring majority ownership of five gas production, transportation, refining, and storage companies. The MORALES administration plans to increase state control over other sectors as well, including mining, electricity, telecommunications, transportation, and forestry. Real GDP growth in 2003-06 - helped by increased demand for natural gas in neighboring Brazil - was positive, but still below the levels seen during the 1990s. Bolivia's fiscal position has improved in recent years, and the country had a record 6% fiscal surplus for 2006. In 2005, the G8 announced a $2 billion debt-forgiveness plan over the next few decades. The International Monetary Fund and the World Bank forgave a total of approximately $1.8 billion of Bolivian debt in 2006 that has helped reduce fiscal pressures on the government.

GDP (purchasing power parity):
$27.87 billion (2006 est.)

GDP (official exchange rate):
$10.33 billion (2006 est.)

GDP - real growth rate:
4.5% (2006 est.)

GDP - per capita (PPP):
$3,100 (2006 est.)

GDP - composition by sector:
agriculture: 12.6%
industry: 35.6%
services: 51.8% (2006 est.)

Labor force:
4.297 million (2006 est.)

Labor force - by occupation:
agriculture: NA%
industry: NA%
services: NA%

Unemployment rate:
7.8% in urban areas; widespread underemployment (2006 est.)

Population below poverty line:
64% (2004 est.)

Household income or consumption by percentage share:
lowest 10%: 0.3%
highest 10%: 47.2% (2002)

Distribution of family income - Gini index:
60.1 (2002)

Inflation rate (consumer prices):
4.3% (2006 est.)

Investment (gross fixed):
12.9% of GDP (2006 est.)

Budget:
revenues: $4.48 billion
expenditures: $3.95 billion (2006 est.)

Agriculture - products:
soybeans, coffee, coca, cotton, corn, sugarcane, rice, potatoes; timber

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

Industrial production growth rate:
5.7% (2004 est.)

Electricity - production:
5.041 billion kWh (2005)

Electricity - consumption:
4.207 billion kWh (2005)

Electricity - exports:
0 kWh (2005)

Electricity - imports:
0 kWh (2005)

Oil - production:
42,000 bbl/day (2005 est.)

Oil - consumption:
47,000 bbl/day (2004 est.)

Oil - exports:
NA bbl/day

Oil - imports:
NA bbl/day

Oil - proved reserves:
440.5 million bbl (1 January 2006)

Natural gas - production:
11.84 billion cu m (2005 est.)

Natural gas - consumption:
2.024 billion cu m (2005 est.)

Natural gas - exports:
9.821 billion cu m (2005 est.)

Natural gas - imports:
0 cu m (2005)

Natural gas - proved reserves:
651.8 billion cu m (1 January 2006 est.)

Current account balance:
$1.32 billion (2006 est.)

Exports:
$3.696 billion f.o.b. (2006 est.)

Exports - commodities:
natural gas, soybeans and soy products, crude petroleum, zinc ore, tin

Exports - partners:
Brazil 45.6%, US 10.8%, Argentina 9.2%, Colombia 6.8%, Japan 5.5%, South Korea 4.3% (2006)

Imports:
$2.636 billion f.o.b. (2006 est.)

Imports - commodities:
petroleum products, plastics, paper, aircraft and aircraft parts, prepared foods, automobiles, insecticides, soybeans

Imports - partners:
Brazil 29.3%, Argentina 16%, Chile 12.1%, US 9.1%, Peru 8.1% (2006)

Economic aid - recipient:
$582.9 million (2005 est.)

Reserves of foreign exchange and gold:
$3.194 billion (2006 est.)

Debt - external:
$4.455 billion (2006 est.)

Stock of direct foreign investment - at home:
$NA

Stock of direct foreign investment - abroad:
$NA

Market value of publicly traded shares:
$2.2 billion (2005)

Currency (code):
boliviano (BOB)

Exchange rates:
bolivianos per US dollar - 8.0159 (2006), 8.0661 (2005), 7.9363 (2004), 7.6592 (2003), 7.17 (2002)