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Business images of Bolivia

Economy of Bolivia

The economy of Bolivia is the 95th-largest in the world in nominal terms and the 87th-largest in purchasing power parity. Bolivia is classified by the World Bank to be a lower middle income country. With a Human Development Index of 0.703, it is ranked 114th (high human development). Driven largely by its natural resources, Bolivia has become a region leader in measures of economic growth, fiscal stability and foreign reserves, although it remains a historically poor country. The Bolivian economy has had a historic single-commodity focus. From silver to tin to coca, Bolivia has enjoyed only occasional periods of economic diversification. Political instability and difficult topography have constrained efforts to modernize the agricultural sector. Similarly, relatively low population growth coupled with low life expectancy has kept the labor supply in flux and prevented industries from flourishing.<br>Between 2006 and 2019 (term of the presidency of the democratic socialist Evo Morales), GDP per capita doubled and the extreme poverty rate declined from 38% to 18%. The poverty rate declined from 22.23% in 2000 to 12.38% in 2010. Moreover, the Gini coefficient declined from 0.60 to 0.446. According to the Bolivian Institute of Foreign Trade, Bolivia had the lowest inflation accumulated inflation of Latin America by October 2021.

Top Sectors in Bolivia

Agriculture in Bolivia

Agriculture, forestry, and fishing accounted for 14 percent of Bolivia's gross domestic product (GDP) in 2003, down from 28 percent in 1986. Combined, these activities employ nearly 44 percent of Bolivia's workers. Most agricultural workers are engaged in subsistence farming—the dominant economic activity of the highlands region. Agricultural production in Bolivia is complicated by both the country's topography and climate. High elevations make farming difficult, as do the El Niño weather patterns and seasonal flooding.<br>Bolivia's most lucrative agricultural product continues to be coca, of which Bolivia is currently the world's third largest cultivator after Colombia and Peru, with an estimated 29,500 hectares under cultivation in 2007, slightly higher than the previous year. Bolivia is the third-largest producer of cocaine, a drug produced from coca, estimated at 120 metric tons potential pure cocaine in 2007 and a transit country for Peruvian and Colombian cocaine destined illegally for the U.S., Europe, Brazil, Argentina, Chile, and Paraguay. The Bolivian government, in response to international pressure, worked to restrict coca cultivation. However, eradication efforts have been hampered by the lack of a suitable replacement crop for rural communities that have cultivated coca for generations. The Morales government turned back some of the results which were obtained in previous years.

Mining and minerals in Bolivia

Mining continues to be vital to Bolivia's economy. The collapse of the world tin market in the 1980s led to a restructuring of the industry. The state dramatically reduced its control and presently operates only a small portion of mining activities. Small-scale operations, often with low productivity, employ many former state miners. Natural gas has supplanted tin and silver as the country's most valuable natural commodity. A discovery in 1997 confirmed a tenfold gain in Bolivia's known natural gas reserves. Finding markets to utilize this resource, both domestically and internationally, has been slowed by a lack of infrastructure and conflicts over the state's role in controlling natural resources. Although the world tin market has re-emerged, Bolivia now faces stiff competition from Southeast Asian countries producing lower-cost alluvial tin. Gold and silver production has increased dramatically over the past decade. Annually, as of 2002 Bolivia extracted and exported more than 11,000 kilograms of gold and 461 tons of silver. Additionally, Bolivia has increased zinc production, extracting more than 100,000 tons each year. Other metals excavated include antimony, iron, and tungsten.

Services in Bolivia

The services industry in Bolivia remains undeveloped. Inhabiting one of the poorest countries in South America, Bolivians have weak purchasing power. The retail sector suffers from weak demand and competition with a large black market of contraband goods. U.S. companies such as McDonald's and Domino's have pulled out of Bolivia in recent years.

Banking and finance in Bolivia

Bolivia has a central bank and nine private banks. Consolidation occurred following reforms, lowering the number of private banks in Bolivia from 14 in 1995 to nine in 2003. Foreign participation and investment in Bolivian banks are allowed. About 90 percent of Bolivian bank deposits are held in U.S. dollars. The Bolivian government is trying to change this situation by taxing dollarized accounts while exempting boliviano accounts from the tax. As recently as 2002, 27 percent of all loans were non-performing, leading most foreign investors to focus their resources in the somewhat-safer venue of corporate lending. Most bank lending in 2003 went to manufacturing, followed by property services and trade and retail. Bad debt remains at a historically high level. Further reforms are necessary, including the pending act to introduce a deposit guarantee system. Bolivia's stock market expanded in 1998 to include corporate bonds, along with the money market and government bond options that had existed previously. The privatization of Bolivia's social security program has bolstered the stock market.

Tourism in Bolivia

Bolivia's spectacular vistas and natural attractions have not been enough to transform the country into a major tourist destination because of its political instability and lack of first-class accommodations. Still, Bolivia's tourist industry has grown gradually over the past 15 years. In 2000 Bolivia attracted 306,000 tourists, compared with 254,000 in 1990. Tourist revenue peaked at US$179 million in 1999. Tourism in Bolivia declined following the 11 September 2001 attack on the United States, as was the case across North and South America. Since from 2001, however, the tourism sector is strongly increasing. In fact, in 2018, the number of tourists reached 1,142,000 arrivals.


Bolivia - Key Economic Indicators

Exports and Imports

Bolivia's economy heavily relies on exports of natural resources, including minerals, natural gas, and agricultural products. The country's main export partners include Brazil, Argentina, and the United States. Imports primarily consist of machinery, chemicals, and vehicles. In recent years, Bolivia has been striving to diversify its export base to reduce dependence on commodity prices.

Infrastructure

Infrastructure development in Bolivia faces challenges due to rugged terrain and limited financial resources. While efforts have been made to improve roads and bridges, especially in urban areas, significant gaps remain, particularly in rural regions. Investment in infrastructure projects is crucial for enhancing connectivity and driving economic growth.

Balance of Trade

Bolivia generally maintains a trade surplus due to its exports of natural resources. However, fluctuations in commodity prices and demand can impact the balance of trade. Government policies aim to promote exports and reduce dependence on imports through trade agreements and incentives for domestic production.

Fiscal policy

Bolivia's fiscal policy focuses on prudent government spending and taxation to support economic stability and social programs. The government implements measures to control public debt while investing in infrastructure, education, and healthcare. Tax reforms are periodically introduced to enhance revenue collection and address fiscal deficits.

Monetary policy

The Central Bank of Bolivia plays a critical role in implementing monetary policy to manage inflation and ensure price stability. Monetary authorities monitor factors such as money supply, interest rates, and foreign exchange reserves to support economic growth while containing inflationary pressures.

Trade agreements

Bolivia is a member of various trade agreements and organizations, including the Andean Community, Mercosur, and the World Trade Organization (WTO). These agreements facilitate trade relations with neighboring countries and provide opportunities for market access and export diversification.

Environmental regulations

Bolivia recognizes the importance of environmental conservation and sustainable development. Environmental regulations aim to mitigate the adverse impact of economic activities on ecosystems, biodiversity, and natural resources. The government promotes initiatives for renewable energy, forest protection, and waste management to ensure environmental sustainability alongside economic growth.

Tax System in Bolivia

Capital Gains Tax: Bolivia imposes a capital gains tax on profits derived from the sale of assets such as stocks, bonds, real estate, and other investments. The tax rate may vary depending on the type and duration of the investment.
Corporate Tax Rate: The corporate tax rate in Bolivia is generally applied to business profits earned by companies operating within the country. The standard corporate tax rate is set at a flat rate, but there may be variations or exemptions based on specific industries or regions.
Sales Tax: Bolivia imposes a value-added tax (VAT) known as the Impuesto al Valor Agregado (IVA) on the sale of goods and services. The standard VAT rate applies to most transactions, while certain essential items may be subject to reduced rates or exemptions.
Property Tax: Property owners in Bolivia are subject to a tax on real estate holdings. The property tax rate may vary depending on factors such as the type of property, its location, and its assessed value.
Payroll Tax: Bolivia levies a payroll tax on wages and salaries earned by employees, which is often used to fund social security programs and other government initiatives aimed at supporting workers.
Tax Deductions and Credits: Bolivia's tax system may include various deductions, credits, and incentives designed to reduce tax liability for individuals and businesses. These deductions and credits may apply to specific expenses, investments, or activities.
Tax Compliance: Tax compliance refers to the efficiency and effectiveness of tax collection processes and enforcement mechanisms in Bolivia. Improving tax compliance is essential for ensuring that individuals and businesses fulfill their tax obligations and contribute to government revenue.
Tax Burden: The tax burden in Bolivia refers to the overall amount of taxes paid by individuals and businesses relative to their income, profits, or assets. Assessing the tax burden helps policymakers evaluate the fairness and sustainability of the tax system and its impact on economic growth and development.

1139 Live Notices for Bolivia ....

Showing 1 to 20

Provision and Installation of a Redundancy NVR to Strengthen the Video Surveillance System
country Bolivia
posting date29 Mar 2025
deadline10 Apr 2025
First Purchase Of Medical Supplies For The Care Of Universal Health Insurance Of The Tququipaya Hospital And Health Centers Management 2025
country Bolivia
posting date29 Mar 2025
deadline09 Apr 2025
Const. Early Daniel Campos Street Franz Tamayo D-14
country Bolivia
posting date29 Mar 2025
deadline07 Apr 2025
Purchase Of Computer Equipment For The Different Addresses Of The Municipal Autonomous Government Of Puerto Villarroel
country Bolivia
posting date29 Mar 2025
deadline03 Apr 2025
Const. In Potosi Street Puerto Camacho D-14
country Bolivia
posting date29 Mar 2025
deadline07 Apr 2025
School Transport Service 2025 Dispersa Area (Route-Ckari Mayu-Educational Unit Collpa And Viceversa-Route-Huanuna-Unit Eduactiva Collpa And Viceversa) Of The G.A.M. Of Occurred
country Bolivia
posting date29 Mar 2025
deadline03 Apr 2025
Subalcaldia Tunari Environmental Pollution Support And Prevention
country Bolivia
posting date29 Mar 2025
deadline09 Apr 2025
Acquisition Of Complementary Nutritional Food For The Elderly "Carmelo" - Management 2025
country Bolivia
posting date29 Mar 2025
deadline11 Apr 2025
Acquisition Of Lane Pea For Different Stock Warehouse Units
country Bolivia
posting date29 Mar 2025
deadline07 Apr 2025
Acquisition Of Material Reactive Medications And Supplies For Hemodynamic Service Of The San Juan De Dios Hospital During The 2025 Hsjdd Ssdh Management
country Bolivia
posting date29 Mar 2025
deadline04 Apr 2025
"Acquisition Of Drugs Of Greater Rotate Made In Bolivia - Regional Oruro"
country Bolivia
posting date29 Mar 2025
deadline01 Apr 2025
Mobiliar Acquisition (Tables), For The Faculty Of Pharmaceutical And Biochemical Sciences, Project: "Computer Center Equipment For The Faculty Of Pharmaceutical And Biochemical Sciences
country Bolivia
posting date29 Mar 2025
deadline03 Apr 2025
Single Purchase Acquisition Of Liquid Vaseline For The Santa Barbara Hospital
country Bolivia
posting date29 Mar 2025
deadline02 Apr 2025
Acquisition Of Spare Parts For Lr-503, Lr-504 Komatsu Machines
country Bolivia
posting date29 Mar 2025
deadline03 Apr 2025
Acquisition Of Radiographic Plates For The Imaging Service Of The Regional Health Petroleum Sucre, Management 2025
country Bolivia
posting date29 Mar 2025
deadline03 Apr 2025
6 -Watts Led Led Acquisition, For The Sub -Mayor'S Office Of The Municipal District No. 5
country Bolivia
posting date29 Mar 2025
deadline02 Apr 2025
Technical Management Team Acquisition
country Bolivia
posting date29 Mar 2025
deadline03 Apr 2025
Acquisition Of Inputs For Hematological Counters Cercado Red
country Bolivia
posting date29 Mar 2025
deadline10 Apr 2025
Acquisition Of Reagents And Supplies For The Laboratory Unit (Sus) - San Benito Health Center
country Bolivia
posting date29 Mar 2025
deadline03 Apr 2025
Complementary Works - Training Center District 3
country Bolivia
posting date29 Mar 2025
deadline04 Apr 2025

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