Bolivia Economy Profile 2003

Economy - overview

Bolivia, long one of the poorest and least developed Latin American countries, made considerable progress in the 1990s toward the development of a market-oriented economy. Successes under President SANCHEZ DE LOZADA (1993-97) included the signing of a free trade agreement with Mexico and becoming an associate member of the Southern Cone Common Market (Mercosur), as well as the privatization of the state airline, telephone company, railroad, electric power company, and oil company. Growth slowed in 1999, in part due to tight government budget policies, which limited needed appropriations for anti-poverty programs, and the fallout from the Asian financial crisis. In 2000, major civil disturbances held down growth to 2.5%. Bolivia's GDP failed to grow in 2001 due to the global slowdown and laggard domestic activity. Growth picked up slightly in 2002, but the first quarter of 2003 saw extensive civil riots and looting and loss of confidence in the government. Bolivia will remain highly dependent on foreign aid unless and until it can develop its substantial natural resources.

GDP (purchasing power parity)

purchasing power parity - $21 billion (2002 est.)

GDP - real growth rate

1.9% (2002 est.)

GDP - per capita (PPP)

purchasing power parity - $2,500 (2002 est.)

GDP - composition by sector

agriculture: 20%
industry: 20%
services: 60% (2002 est.)

Population below poverty line

70% (1999 est.)

Household income or consumption by percentage share

lowest 10%: 1.3%
highest 10%: 32% (1999)

Inflation rate (consumer prices)

2% (2001 est.)

Labor force

2.5 million

Labor force - by occupation

agriculture NA%, industry NA%, services NA%

Unemployment rate

7.6%
note: widespread underemployment (2000)

Distribution of family income - Gini index

58.9 (1997)

Budget

revenues: $4 billion
expenditures: $4 billion, including capital expenditures of $NA (2002 est.)

Industries

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

Industrial production growth rate

3.9% (1998)

Electricity - production

3.901 billion kWh (2001)

Electricity - production by source

fossil fuel: 44.4%
hydro: 54%
nuclear: 0%
other: 1.6% (2001)

Electricity - consumption

3.634 billion kWh (2001)

Electricity - exports

3 million kWh (2001)

Electricity - imports

9 million kWh (2001)

Oil - production

44,340 bbl/day (2001 est.)

Oil - consumption

49,000 bbl/day (2001 est.)

Oil - imports

NA (2001)

Oil - exports

NA (2001)

Oil - proved reserves

458.8 million bbl (January 2002 est.)

Natural gas - proved reserves

727.2 billion cu m (January 2002 est.)

Agriculture - products

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

Exports

$1.3 billion f.o.b. (2002 est.)

Exports - commodities

soybeans, natural gas, zinc, gold, wood (2000)

Exports - partners

Brazil 19.7%, Colombia 19.2%, US 14.8%, Argentina 9.1%, Peru (2001)

Imports

$1.6 billion f.o.b. (2002 est.)

Imports - commodities

capital goods, raw materials and semi-manufactures, chemicals, petroleum, food

Imports - partners

Brazil 24.4%, Argentina 17.9%, US 13.9%, Chile 9.3%, Peru (2001)

Debt - external

$5.9 billion (2002 est.)

Economic aid - recipient

$588 million (1997)

Currency

boliviano (BOB)

Currency (code)

BOB

Exchange rates

bolivianos per US dollar - 7.17 (2002), 6.6069 (2001), 6.1835 (2000), 5.8124 (1999), 5.5101 (1998)

Fiscal year

calendar year