Living Standards In Bolivia: A Comprehensive Overview

Bolivia is a landlocked country in South America with a population of over 11 million people. It is one of the poorest countries in the continent and has a history of political instability and difficult topography, which have prevented the modernisation of its agricultural sector. However, Bolivia has vast natural resources, including oil, natural gas, minerals, and salt flats, which have driven economic growth. The cost of living in Bolivia is extremely low, with Mercer's 2024 Cost of Living Survey ranking La Paz 196th out of 226 cities surveyed. A retired couple can live very comfortably on $1,500 per month, while a single person can live on $600 to $800. Basic utilities, food, and transportation are affordable, and the country offers a variety of lifestyles, from the high altiplano of the Andes Mountains to the low-altitude rainforest. Bolivia has a diverse culture, influenced by its multi-ethnic indigenous roots, Spanish occupation, and neighbouring countries. While the country has a long way to go in terms of development, it has shown vast improvements in areas such as education and poverty reduction.

Cost of living

Bolivia is one of the poorest countries in South America, but it has experienced some economic growth thanks to its natural resources, including oil, natural gas, and minerals. The cost of living in Bolivia is extremely low, with Mercer's 2024 Cost of Living Survey ranking La Paz 196th out of 226 cities surveyed.

Housing

A retired couple can live a very comfortable life in Bolivia for around $1,550 per month, while a single person can live on $600 to $800 per month. Renting accommodation and buying property are feasible options, with a range of housing options available, including detached houses and apartments. However, costs vary depending on location and property size. For example, a one-bedroom apartment in a safe, central neighbourhood can cost around $200 per month, while a three-bedroom condo in an upscale neighbourhood can rent for between $600 and $800 per month.

Utilities and Groceries

Utilities, groceries, and public transportation are affordable in Bolivia, although public transport may not always be up to the standards of more developed countries. A monthly public transport pass costs around $12, while a month of utilities for a 45m2 studio can cost around $50. Basic groceries are also inexpensive, with a loaf of bread costing around $1.50, a litre of milk costing around $1, and a dozen eggs costing around $2.50.

Dining Out and Entertainment

Dining out is also reasonably priced, with a delicious four-course lunch at Chifa Thai in Sucre costing just under $3. A family-sized platter of grilled meats with access to a salad bar can cost as little as $12, and a nice bottle of locally produced table wine can be purchased for less than $3. Entertainment options are varied and affordable, with a movie ticket costing around $3.50 and a monthly gym membership costing around $30.

Income and Employment

Local salaries in Bolivia are low, so expats may find it more advantageous to work remotely and earn in a foreign currency. The Bolivian government has implemented policies to encourage foreigners to set up businesses in the country. Most expats are employed by NGOs or volunteer for a brief period. Unemployment in Bolivia is currently at 6.2%, and the poverty rate has decreased significantly over the last decade, from 66.4% in 2000 to 39.5% in 2016.

Healthcare

The standard of medical facilities in Bolivia is generally poor, with hospitals typically underfunded and waiting times long. Expats should ensure they have comprehensive health insurance that covers them for treatment outside of Bolivia if necessary.

Safety

Bolivia is increasingly stable and peaceful, but safety and security are still concerns. Petty theft can be a problem, especially in major tourist hubs, so expats should take precautions to keep their valuables out of sight.

Employment and income

Bolivia is classified as a lower-middle-income country by the World Bank, with a Human Development Index of 0.703, ranking it 114th in the world. The Bolivian economy is the 95th largest in the world in nominal terms and the 87th largest in purchasing power parity. Bolivia's economy is largely driven by its natural resources, with the mining industry dominating its export economy, particularly the extraction of natural gas and zinc. The Bolivian economy has historically been focused on a single commodity, shifting from silver to tin to coca over time.

Bolivia's economy experienced rapid growth between 1960 and 1977, but a debt crisis in 1977 led to a loss of GDP gains until 1986. The economy began to grow again after 1986, but a financial crisis between 1998 and 2002 caused setbacks. In the early 21st century, the fundamentals of Bolivia's economy showed unexpected improvement, with Moody's Investors Service upgrading the country's economic rating from B2 to B1 in 2010.

Bolivia's GDP per capita doubled between 2006 and 2019, and the extreme poverty rate declined from 38% to 18% during the same period. The overall poverty rate also decreased significantly, dropping from 22.23% in 2000 to 12.38% in 2010. Inflation has been a challenge for the Bolivian economy since the 1970s, with rates as high as 20,000% in 1985. However, reforms in the 1990s reduced inflation to single digits, and by 2004, Bolivia experienced a manageable inflation rate of 4.9%.

Unemployment in Bolivia is currently at 6.2%, and the country has made strides in diversifying its employment opportunities. Skilled labour makes up 45.2% of the total labour force. The expected years of schooling is 14 years, and while education used to average around 11 years in 1990, there have been great improvements in this sector. Bolivia now ranks 118th in the world for education.

The cost of living in Bolivia is extremely low, with Mercer's 2024 Cost of Living Survey ranking La Paz 196th out of 226 cities surveyed. A retired couple can live a very comfortable life in Bolivia for around $1,550 per month, while money-conscious couples can live on much less. Basic necessities are affordable, with a family-sized platter of grilled meats costing $12 and a nice bottle of locally produced wine costing less than $3. Transportation is also inexpensive, with taxi rides starting at 75 cents and one-way airline tickets between cities available for as little as $27.

However, local salaries in Bolivia are low, and expats may find it more advantageous to work remotely and earn in a foreign currency. The Bolivian currency is the boliviano (BOB), and one boliviano is divided into 100 centavos. As of 2011, the exchange rate was approximately 0.145 US dollars to one boliviano.

Bolivia has a small expat population, and most foreigners are found in the capital cities of Sucre and La Paz or other major cities like Santa Cruz de la Sierra and Cochabamba. Expats are typically employed by NGOs or volunteer for brief periods. The Bolivian government has implemented policies to encourage foreigners to set up businesses in the country.

Housing

In the capital cities of Sucre and La Paz, as well as other major cities like Santa Cruz de la Sierra and Cochabamba, there are plenty of housing options, from detached houses to apartments. The cost of renting or buying property varies depending on location and property size, but it is generally affordable for foreigners—La Paz was ranked 196th out of 226 cities for cost of living in Mercer's 2024 Cost of Living Survey.

For example, in the southern city of Tarija, US expat Nathan Salveson lives in a one-bedroom apartment in a safe, central neighbourhood for $200 a month, including all utilities and cable television. In the breathtaking colonial city of Sucre, Steve Nagy rents a one-bedroom apartment right on the edge of the historic district for less than $300 a month, with internet and weekly maid service included. In Cochabamba, a three-bedroom condo in an upscale neighbourhood typically rents for between $600 and $800 a month. However, if you want to be close to the city's amenities but don't want to pay high prices, you can live just outside the city—Eileen Velicky and her husband Bill rent a three-bedroom house in nearby Tiquipaya for just $200 a month.

While the cost of living in Bolivia is low, local salaries are also low, so expats will need to work remotely and earn in a foreign currency, or have savings to live off.

Healthcare

Bolivia is currently working to establish a universal healthcare system. The previous system offered healthcare to pregnant women and some beneficiaries through a small network of free hospitals. The government has now started taking beneficiaries for its universal health insurance scheme, which will rely on a strong network of private hospitals.

The Bolivian government is also working to improve access to basic public services, of which a large number of Bolivians are currently lacking. This includes access to running water, electricity, and healthcare.

The standard of healthcare in Bolivia varies across the country. The city of Cochabamba, for example, is one of the more expensive cities in Bolivia, with ritzy, Southern California vibes. However, it is still far more affordable than any North American city.

Some expats choose to live outside of Cochabamba to save on living costs but still have easy access to the city's amenities. For example, Eileen Velicky and her husband rent a three-bedroom house in the nearby town of Tiquipaya for just $200 a month. They can take a shared cab into Cochabamba for 35 cents.

In the southern city of Tarija, U.S. expat Nathan Salveson reports living comfortably on under $1,000 a month. He pays $200 a month for a one-bedroom apartment in a safe, central neighborhood, with all utilities and cable television included. He spends around $220 a month on food, opting for healthy and tasty meals.

In the breathtaking colonial city of Sucre, Steve Nagy rents a one-bedroom apartment on the edge of the historic district for less than $300 a month, with internet and weekly maid service included. According to Steve, a couple could live well in Sucre on $1,000 a month, while a single person could live on $600 to $800.

Overall, Bolivia offers an affordable cost of living, with healthcare being a key component of this.

Education

Bolivia's education system has seen improvements over the last few decades. According to the UN development program reports, both boys and girls receive the same amount of primary schooling. The expected years of schooling is 14 years, which ranks Bolivia 118th in the world for education. However, women and girls still face more struggles, with child marriage for girls under 18 years at 19% and women's yearly income estimated to be only about half of men's.

Child labour remains an issue in Bolivia, with UNESCO estimating that 13.9% of 7-14 year-olds were child workers in 2016, employed in agriculture, services, mining and other hard labour. However, the country has made efforts to eliminate child labour, with strides made in 2017 to end the practice in the agricultural sector.

Public schooling in Bolivia is of poor quality, with schools poorly maintained. Private and international schools are likely to be the preferred choice for expats with children. Fortunately, expats will likely be able to find an international school that follows a familiar curriculum, such as the American, British, French or German systems.

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