Bolivia's Healthy Gdp: What's The Magic Number?

Bolivia's economy is the 95th largest in the world, and the country is classified by the World Bank as a lower-middle-income country. Bolivia's GDP has been steadily increasing over the years, with a projected increase of 35.27% between 2024 and 2029. In 2022, Bolivia's nominal GDP was around $43 billion, with a GDP per capita of approximately $3,686. Bolivia's economy is largely driven by its natural resources, with the mining industry, particularly natural gas and zinc extraction, dominating its export economy.

Bolivia's GDP growth rate in 2022

Bolivia's economy is the 95th largest in the world in nominal terms and the 87th largest in purchasing power parity. The country is classified as a lower-middle-income economy by the World Bank and has a Human Development Index (HDI) of 0.703, ranking 114th in the world. While Bolivia has experienced periods of economic growth and diversification, it remains a historically poor country with a low population growth rate and low life expectancy.

Bolivia's GDP per capita

In 2022, Bolivia's GDP per capita was $3,156, a slight increase from $3,098 in 2021, according to Worldometer. This represents a 1.9% growth in GDP per capita.

Bolivia's economy is driven by its abundant natural resources, including natural gas, gold, zinc, silver, and lithium reserves, as well as agricultural products like soy and quinoa. The country is a member of the Andean Community, a free trade bloc, and is soon expected to become a full member of the Southern Common Market (Mercosur). This membership fosters monetary stability and enhances Bolivia's economic position in the region.

Historically, Bolivia's economy has faced challenges due to insufficient diversification, vulnerability to commodity price fluctuations, high public debt, and structural and institutional issues. However, the country has made significant progress in recent years, with a reduction in poverty and extreme poverty rates.

Bolivia's GDP in current prices is forecasted to continuously increase between 2024 and 2029, reaching a new peak of $66.76 billion in 2029, according to Statista. This growth showcases the country's economic potential and ongoing development efforts.

Bolivia's GDP by economic sector

The mining industry, particularly the extraction of natural gas and zinc, currently dominates Bolivia's export economy. Bolivia has the second-largest natural gas reserves in South America, and natural gas has replaced tin and silver as the country's most valuable natural commodity. Bolivia also has significant reserves of lithium, estimated at 9 million tons, which is important for the production of lithium-ion batteries.

Manufacturing accounts for approximately 18% of Bolivia's GDP between 1995 and 2005. The main manufactured goods include textiles, clothing, processed soya, refined metals, and petroleum. The food, beverage, and tobacco processing industry is the largest within the manufacturing sector, with soybeans and derivatives being the most exported products in recent years.

The services industry in Bolivia is underdeveloped due to weak purchasing power. The retail sector faces weak demand and competition from the black market. Bolivia's energy sector relies mainly on oil, followed by natural gas and hydroelectric power. The country has the fifth-largest oil reserves in South America and is self-sufficient in energy production.

Bolivia's GDP by type of expenditure

In 2021, services accounted for 61% of overall GDP, manufacturing 11%, other industrial activity 15%, and agriculture 13%. Looking at GDP by expenditure, private consumption accounted for 67% of GDP in 2021, government consumption 19%, fixed investment 17%, and net exports -3%.

In 2021, manufactured products made up 4% of total merchandise exports, mineral fuels 21%, food 19%, ores and metals 31%, and agricultural raw materials 1%, with other categories accounting for 24% of the total. In the same period, manufactured products made up 67% of total merchandise imports, mineral fuels 24%, food 8%, ores and metals 1% and agricultural raw materials 1%, with other goods accounting for -1% of the total.

In 2012, Bolivia's expenditures were nearly US$12.2 billion while revenues amounted to about US$12.6 billion.

Bolivia's GDP growth rate in 2029

Bolivia's economy is the 95th largest in the world in nominal terms and the 87th largest in purchasing power parity. The country is classified by the World Bank as a lower-middle-income country. Bolivia's economy is largely driven by its natural resources, and the country has become a regional leader in measures of economic growth, fiscal stability, and foreign reserves.

Between 2006 and 2019, during the presidency of Evo Morales, Bolivia's GDP per capita doubled, and the extreme poverty rate declined from 38% to 18%. The poverty rate also decreased from 22.23% in 2000 to 12.38% in 2010. In 2016, Bolivia's GDP in PPP totaled $78.35 billion, with a standard of living, as measured in GDP in PPP per capita, of US$7,191.

Bolivia's most lucrative agricultural product is coca, of which Bolivia is the world's third-largest cultivator. Bolivia is also a significant producer of minerals, including silver, boron, antimony, tin, tungsten, zinc, and lead. The mining industry, particularly the extraction of natural gas and zinc, dominates Bolivia's export economy.

Bolivia's GDP growth rate has fluctuated in recent years, with a rate of 2.22% in 2019, -8.74% in 2020, 6.11% in 2021, and 3.61% in 2022.

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