For the latest updates on the key economic responses from governments to address the economic impact of the COVID-19 pandemic, please consult the IMF's policy tracking platform Policy Responses to COVID-19.
Though rich in mineral resources - with the second-largest reserves of natural gas in South America - Bolivia is one of the region's poorest countries. Bolivia also lacks economic diversification, making the country's economic growth largely supported by natural gas exports. In 2021, the country registered an estimated GDP growth rate of 5%, mainly driven by private and public consumption, as well as external demand (IMF). The economy is expected to continue to pick up in the coming years, albeit at a slower pace, with the IMF predicting a GDP growth of 4% for 2022 and 3.7% for 2023.
The Bolivian economy seems rather strong in appearance: a sustained growth, an inflation under control (1.3% in 2021), and large currency reserves. However, Bolivia is dependent on oil prices, and the large fall in gas export revenue has affected public accounts: the budget and current deficits are increasing. The expansionary budget also contributed to worsening public budget, which was negative by 9.7% in 2021. The financing of the deficit is expected to increasingly depend on multilateral donors, such as the IMF, the Andean Development Cooperation, and the World Bank. In 2021, the current account deficit reached 2.2%, and it should slightly increase to 2.8% in 2022 and 3.2% in 2023. Overcoming the dependency on mineral resources, reforming justice, modernising infrastructure, the increase in the competitiveness of the labour force, combating insecurity and addressing the problem of violence against women are the country's main challenges in the long run. In 2021, the government continued implementing measures in response to the economic crisis resulting from the COVID-19 pandemic that included the deferral of some tax payments, the creation of a USD 219 million fund to support micro, small, and medium businesses; and increased social spending to aid eligible individuals, such as those who receive the universal transfer, mothers, people with disabilities and citizens over the age of 18 who do not receive any type of public or private salary. Overall, the economy has been showing significant signs of recovery thanks to the measures adopted by the government in light of the pandemic.
In spite of a sharp fall in poverty in the last decade, nearly 40% of Bolivians still live below the poverty line. The country is also marked by inequalities in the distribution of its wealth and a strong informal sector. However, the unemployment rate is among the lowest in the region, as it stood at an estimated 6% in 2021. Moreover, the Bolivian justice system has been plagued by corruption, delays, and political interference. Additionally, impunity for violent crime and human rights violations remains a serious problem.
Main Indicators | 2020 | 2021 | 2022 (E) | 2023 (E) | 2024 (E) |
---|---|---|---|---|---|
GDP (billions USD) | 36.90 | 40.70 | 43.22 | 46.10 | 48.71 |
GDP (Constant Prices, Annual % Change) | -8.7 | 6.1 | 3.2 | 1.8 | 1.9 |
GDP per Capita (USD) | 3,173 | 3,449 | 3,614 | 3,800 | 3,963 |
General Government Gross Debt (in % of GDP) | 78.0 | 81.4 | 82.6 | 82.3 | 83.1 |
Inflation Rate (%) | 0.9 | 0.7 | 1.7 | 4.0 | 3.7 |
Current Account (billions USD) | -0.03 | 0.85 | -0.63 | -1.13 | -1.28 |
Current Account (in % of GDP) | -0.1 | 2.1 | -1.5 | -2.5 | -2.6 |
Source: IMF – World Economic Outlook Database - October 2021.
Note: (e) Estimated Data
Monetary Indicators | 2016 | 2017 | 2018 | 2019 | 2020 |
---|---|---|---|---|---|
Boliviano (BOB) - Average Annual Exchange Rate For 1 GHS | 1.73 | 1.59 | 1.51 | 1.33 | 1.23 |
Source: World Bank - Latest available data.
Breakdown of Economic Activity By Sector | Agriculture | Industry | Services |
---|---|---|---|
Employment By Sector (in % of Total Employment) | 30.5 | 19.4 | 50.0 |
Value Added (in % of GDP) | 12.9 | 26.4 | 50.6 |
Value Added (Annual % Change) | 1.8 | 9.6 | 4.8 |
Source: World Bank - Latest available data.
Socio-Demographic Indicators | 2022 | 2023 (e) | 2024 (e) |
---|---|---|---|
Unemployment Rate (%) | 4.7 | 4.9 | 5.0 |
Source: IMF – World Economic Outlook Database - Latest available data
2018 | 2019 | 2020 | |
---|---|---|---|
Labour Force | 5,631,098 | 5,758,760 | 5,431,077 |
Source: International Labour Organization, ILOSTAT database
2017 | 2018 | 2019 | |
---|---|---|---|
Total activity rate | 71.04% | 74.04% | 74.21% |
Men activity rate | 81.16% | 82.65% | 82.65% |
Women activity rate | 60.81% | 65.34% | 65.70% |
Source: International Labour Organization, ILOSTAT database
The Economic freedom index measure ten components of economic freedom, grouped into four broad categories or pillars of economic freedom: Rule of Law (property rights, freedom from corruption); Limited Government (fiscal freedom, government spending); Regulatory Efficiency (business freedom, labour freedom, monetary freedom); and Open Markets (trade freedom, investment freedom, financial freedom). Each of the freedoms within these four broad categories is individually scored on a scale of 0 to 100. A country’s overall economic freedom score is a simple average of its scores on the 10 individual freedoms.
Economic freedom in the world (interactive map)
Source: Index of Economic Freedom, Heritage Foundation
See the country risk analysis provided by Coface.
The Indicator of Political Freedom provides an annual evaluation of the state of freedom in a country as experienced by individuals. The survey measures freedom according to two broad categories: political rights and civil liberties. The ratings process is based on a checklist of 10 political rights questions (on Electoral Process, Political Pluralism and Participation, Functioning of Government) and 15 civil liberties questions (on Freedom of Expression, Belief, Associational and Organizational Rights, Rule of Law, Personal Autonomy and Individual Rights). Scores are awarded to each of these questions on a scale of 0 to 4, where a score of 0 represents the smallest degree and 4 the greatest degree of rights or liberties present. The total score awarded to the political rights and civil liberties checklist determines the political rights and civil liberties rating. Each rating of 1 through 7, with 1 representing the highest and 7 the lowest level of freedom, corresponds to a range of total scores.
Political freedom in the world (interactive map)
Source: Freedom in the World Report, Freedom House
The world rankings, published annually, measures violations of press freedom worldwide. It reflects the degree of freedom enjoyed by journalists, the media and digital citizens of each country and the means used by states to respect and uphold this freedom. Finally, a note and a position are assigned to each country. To compile this index, Reporters Without Borders (RWB) prepared a questionnaire incorporating the main criteria (44 in total) to assess the situation of press freedom in a given country. This questionnaire was sent to partner organisations,150 RWB correspondents, journalists, researchers, jurists and human rights activists. It includes every kind of direct attacks against journalists and digital citizens (murders, imprisonment, assault, threats, etc.) or against the media (censorship, confiscation, searches and harassment etc.).
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Latest Update: April 2023