Economy of Bolivia
Foreign investment in Bolivia was buoyed in 1995 by privatization. Investment in mining and natural gas extraction increased, as did investment in the banking sector. However, the economic decline of the late 1990s, along with political unrest, caused foreign investors to pull out of Bolivia once again. In 2000 foreign investors contributed US$736 million to the Bolivian economy. In 2002 this total fell to US$676 million.[1]
In 2007, India's third largest steel manufacturer, Jindal Steel and Power Limited, signed a contract with the Bolivian government to exploit the Mutun iron ore depoist, considered to be one of the largest in the world. According to the contract, Jindal would invest US$ 1.5 billion initially and an additional US$ 2.5 billion over the next eight years. This is the single largest investment by an Indian firm in Latin America.[2] The mining is expected to create 6,000 jobs directly and another 15,000 indirectly. The Indian company projects handling 25 million tonnes of minerals per day.[3] Through this deal, Bolivian government has shown its intent to decrease its economic reliance on Brazil and United States and develop closer ties with other emerging major economic powers, like China and India.
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Statistics
- GDP: purchasing power parity - 25.82 billion (2005 est.)
- GDP - real growth rate: 4.1% (2005 est.)
- GDP - per capita: purchasing power parity - $2,900 (2005 est.)
- GDP - composition by sector:
- agriculture: 12.8%
- industry: 35.2%
- services: 52% (2005 est.)
Population below poverty line: 38.2% (2007 est.)
Household income or consumption by percentage share:
lowest 10%: 1.3%
highest 10%: 32% (1999)
Inflation rate (consumer prices): 5.4% (2005 est.)
Labor force: 4.22 million
Labor force - by occupation: agriculture %, industry %, services %
Unemployment rate: 8% in urban areas, with widespread underemployment (2005 est.)
Budget:
revenues: $2.848 billion
expenditures: $3.189 billion including capital expenditures of $741 million (2005)
Industries: mining, smelting, petroleum, food and beverages, tobacco, handicrafts, clothing
Industrial production growth rate: 5.7% (2004 est.)
Electricity - production: 4.25 billion kWh (2003)
Electricity - production by source:
fossil fuel: 42.43%
hydro: 55.75%
nuclear: 0%
other: 1.82% (1998)
Electricity - consumption: 3.963 billion kWh (2003)
Electricity - exports: 0 kWh (2003)
Electricity - imports: 10 million kWh (2003)
Agriculture - products: soybeans, coffee, coca, cotton, corn, sugar cane, rice, potatoes, timber
Exports: $2.371 billion (f.o.b., 2005 est.)
Exports - commodities: natural gas, soybeans and soy products, crude petroleum, zinc ore, tin
Exports - partners: Brazil 21.9%, Argentina 16.7%, US 13.8%, Chile 6.9%, Peru 6.5%, Japan 6.1%, China 5.8% (2005)
Imports: $1.845 billion (f.o.b., 2005 est.)
Imports - commodities: petroleum products, plastics, paper, aircraft and aircraft parts, prepared foods, automobiles, insecticides, soybeans
Imports - partners: Brazil 21.9%, Argentina 16.7%, US 13.8%, Chile 6.9%, Peru 6.5%, Japan 6.1%, China 5.8% (2005)
Debt - external: $6.309 billion (2005 est.)
Economic aid - recipient: $221 million (2005 est.)
Currency: 1 boliviano (BOB) = 100 centavos
Exchange rates: bolivianos (BOB) per US$1 - 8.0661 (2005), 7.9363 (2004), 7.6592 (2003), 7.17 (2002), 6.6069 (2001)
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Notes
- ^ a b c d e f g h i j k l m n o p q "Country Profile: Bolivia." Library of Congress Federal Research Division. January 2006. http://lcweb2.loc.gov/frd/cs/profiles/Bolivia.pdf
- ^ India's Bolivian ore | The Australian
- ^ AFP: Bolivia OKs Indian firm to mine vast iron deposit
Unemployment rate- 11.7%
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References
- This article contains material from the Library of Congress Country Studies, which are United States government publications in the public domain.
- This article contains material from the CIA World Factbook which, as a U.S. government publication, is in the public domain.
- This article contains material from the US Department of State's Background Notes which, as a US government publication, is in the public domain.
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External links
- Turning Gas into Development in Bolivia from Dollars & Sense magazine
- Bolivia’s Economy - An Update from the Center for Economic and Policy Research
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