Editing Economy of Bolivia

{{Short description|None}}
{{use dmy dates|date=December 2019}}
{{use American English|date=July 2018}}
{{Infobox economy
|country         = Bolivia
|image           = Centro de La Paz al atardecer.jpg
|caption         = [[La Paz]], the [[financial centre]] of Bolivia
|currency        = [[Bolivian Boliviano]] (BOB)
|fixed exchange  =
|year            = [[Calendar year]]
|organs          = [[World Trade Organization|WTO]], [[Andean Community|CAN]], [[UNASUR]], [[Mercosur]]
|group           = {{plainlist|
*[[Developing country|Developing/Emerging]]<ref>{{cite web |url=https://www.imf.org/external/pubs/ft/weo/2019/01/weodata/weoselco.aspx?g=2200&sg=All+countries+%2f+Emerging+market+and+developing+economies |title=World Economic Outlook Database, April 2019 |publisher=[[International Monetary Fund]] |access-date=29 September 2019}}</ref>
*Lower-middle income economy<ref>{{cite web |url=https://datahelpdesk.worldbank.org/knowledgebase/articles/906519-world-bank-country-and-lending-groups |title=World Bank Country and Lending Groups |publisher=World Bank |access-date=29 September 2019}}</ref>}}
|population      = {{increase}} 12,290,945 (2024)<ref name="IMFWEOBO" />
|gdp             = {{plainlist|
*{{nowrap|{{increase}} $105&nbsp;billion (nominal, 2024)<ref name="IMFWEOBO" />}}
*{{increase}} $131.422&nbsp;billion ([[Purchasing power parity|PPP]], 2024)<ref name="IMFWEOBO">{{cite web |url=https://www.imf.org/en/Publications/WEO/weo-database/2024/April/weo-report?c=111,&s=NGDPD,PPPGDP,NGDPDPC,PPPPC,&sy=2022&ey=2027&ssm=0&scsm=1&scc=0&ssd=1&ssc=0&sic=0&sort=country&ds=.&br=1 |title=Report for Selected Countries and Subjects: April 2024|publisher=[[International Monetary Fund]]}}</ref>}}
|gdp rank        = {{plainlist|
*[[List of countries by GDP (nominal)|93rd (nominal, 2024)]]
*[[List of countries by GDP (PPP)|93rd (PPP, 2024)]]}}
|growth          = {{plainlist|
*4.2%&nbsp;(2018) 2.7%&nbsp;(2019e)
*−5.9%&nbsp;(2020f) 2.2%&nbsp;(2021f)<ref>{{cite book |title=Global Economic Prospects, June 2020 |page=86 |url=https://openknowledge.worldbank.org/handle/10986/33748 |date=8 June 2020 |publisher=[[World Bank]] |doi=10.1596/978-1-4648-1553-9 |isbn=978-1-4648-1553-9 |access-date=16 June 2020}}</ref>}}
|per capita      = {{plainlist|
*{{increase}} $4,014 (nominal, 2024)<ref name="IMFWEOBO" />
*{{increase}} $10,693 (PPP, 2024)<ref name="IMFWEOBO" />}}
|per capita rank = {{plainlist|
*[[List of countries by GDP (nominal) per capita|126th (nominal, 2024)]]
*[[List of countries by GDP (PPP) per capita|122nd (PPP, 2024)]]}}
|sectors         = {{plainlist|
*[[Primary sector of the economy|agriculture]]: 13.8%
*[[Secondary sector of the economy|industry]]: 37.8%
*[[Tertiary sector of the economy|services]]: 48.2% 
*(2017 est.)<ref name="CIA World Factbook - Bolivia" />}}
|components      =
|inflation       = 3.1% (2020 est.)<ref name="IMFWEOBO" />
|poverty         = {{plainlist|
*{{decreasePositive}} 36.4% (2021)<ref>{{cite web |title=Poverty headcount ratio at national poverty lines (% of population) - Bolivia |url=https://data.worldbank.org/indicator/SI.POV.NAHC?end=2021&locations=BO&start=2019&view=chart |website=data.worldbank.org |publisher=World Bank |access-date=21 March 2020}}</ref>
*{{decreasePositive}} 10.6% on less than $3.20/day (2018)<ref>{{cite web |url=https://data.worldbank.org/indicator/SI.POV.LMIC?locations=BO&name_desc=false |title=Poverty headcount ratio at $3.20 a day (2011 PPP) (% of population) – Bolivia |publisher=World Bank |access-date=21 March 2020}}</ref>}}
|gini            = {{decreasePositive}} 40.9 {{color|darkorange|medium}} (2018)<ref>{{cite web |url=https://data.worldbank.org/indicator/SI.POV.GINI?end=2021&locations=BO&start=2019&view=chart |title=GINI index (World Bank estimate) |publisher=World Bank |access-date=21 March 2020}}</ref>
|hdi             = {{plainlist|
*{{increase}} 0.698 {{color|darkorange|medium}} (2022)<ref name="bohdi">{{Cite web |date=13 March 2024 |title=Human Development Report 2023/2024 |url=https://hdr.undp.org/system/files/documents/global-report-document/hdr2023-24reporten.pdf|url-status=live |archive-url=https://web.archive.org/web/20240313164319/https://hdr.undp.org/system/files/documents/global-report-document/hdr2023-24reporten.pdf |archive-date=13 March 2024 |access-date=31 May 2024 |publisher=[[United Nations Development Programme]] |language=en}}</ref> ([[List of countries by Human Development Index|120th]])
*{{increase}} 0.560 {{color|darkorange|medium}} [[List of countries by inequality-adjusted HDI|IHDI (99th)]] (2022)<ref name="bohdi" />}}
|edbr            = {{increase}} [[Ease of doing business index#Ranking|150th (below average, 2020)]]<ref name="World Bank and International Financial Corporation">{{cite web |url=http://www.doingbusiness.org/data/exploreeconomies/bolivia |title=Ease of Doing Business in Bolivia |website=Doingbusiness.org |access-date=23 January 2017 }}</ref>
|labor           = {{plainlist|
*{{increase}} 5,423,333 (2019)<ref>{{cite web |url=https://data.worldbank.org/indicator/SL.TLF.TOTL.IN?locations=BO&name_desc=false |title=Labor force, total – Bolivia |publisher=World Bank |access-date=14 October 2019}}</ref>
*{{increase}} 69.3% employment rate (2018)<ref>{{cite web |url=https://data.worldbank.org/indicator/SL.EMP.TOTL.SP.NE.ZS?locations=BO&name_desc=false |title=Employment to population ratio, 15+, total (%) (national estimate) – Bolivia |publisher=World Bank |access-date=23 November 2019}}</ref>}}
|occupations     = {{plainlist|
*[[Primary sector of the economy|agriculture]]: 29.4%
*[[Secondary sector of the economy|industry]]: 22%
*[[Tertiary sector of the economy|services]]: 48.6% 
*(2015 est.)<ref name="CIA World Factbook - Bolivia">{{cite web |url=https://www.cia.gov/the-world-factbook/countries/bolivia/|title=Bolivia |work=The World Factbook |publisher=[[Central Intelligence Agency]] |access-date=5 January 2019}}</ref>}}
|unemployment    = {{plainlist|
*{{steady}} 4% (2017 est.)<ref name="CIA World Factbook - Bolivia" />
*note: data are for urban areas; widespread underemployment}}
|industries      = mining, smelting, petroleum, food and [[beverages]], tobacco, [[handicraft]]s, clothing, jewelry
|exports         = {{increase}} $9.060&nbsp;billion (2018 est.)<ref name="ibce.org.bo">"Instituto de Comercio Exterior – Bolivia"https://ibce.org.bo/publicaciones-ibcecifras-pdf.php?id=705 {{Webarchive|url=https://web.archive.org/web/20190201065847/http://ibce.org.bo/publicaciones-ibcecifras-pdf.php?id=705 |date=1 February 2019 }}</ref>
|export-goods    = natural gas, silver, zinc, lead, tin, gold, quinoa, soybeans and soy products
|export-partners = <!-- {{nowrap| -->
1.{{IND}}: 16.5% <br />
2.{{BRA}}: 13.7% <br />
3.{{ARG}}: 12.8% <br />
4.{{COL}}: 7.69% <br />
5.{{JAP}}: 7.00% <br />
6.{{PER}}: 6.43% <br />
7.{{CHN}}: 4.67% <br />
8.{{KOR}}: 3.91% <br />
9.{{ARE}}: 3.73% <br />
10.{{ECU}}: 3.01% <br/>
11.{{USA}}: 2.83% <br/>
12.{{NED}}: 1.79% <br />
13.{{CHL}}: 1.77% <br />
14.{{BEL}}: 1.72% <br />
15.{{AUS}}: 1.41% <br />
16.{{ITA}}: 1.34% <br />
17.{{ESP}}: 1.19% <br />
18.{{GBR}}: 1.17% <br />
19.{{HKG}}: 1.01% <br />
20.{{TUR}}: 0.98% <br /><!-- }} -->
*'''Other Countries: 5.35%''' (2022)<ref>{{cite web|title=Where does Bolivia export to? (2022) |url=https://oec.world/en/visualize/tree_map/hs92/export/bol/show/all/2022/}}<!-- auto-translated from Spanish by Module:CS1 translator --></ref>
|imports         = {{increase}} $9.996&nbsp;billion (2019 est.)<ref name="ibce.org.bo" />
|import-goods    = machinery, petroleum products, vehicles, iron and steel, plastics
|import-partners = <!-- {{nowrap| -->
1.{{BRA}}: 19.7% <br />
2.{{CHN}}: 19.3% <br />
3.{{CHL}}: 13.0% <br />
4.{{PER}}: 8.74% <br />
5.{{ARG}}: 5.98% <br />
6.{{USA}}: 5.85% <br />
7.{{SIN}}: 2.43% <br />
8.{{GER}}: 2.15% <br />
9.{{MEX}}: 2.03% <br />
10.{{JPN}}: 1.81% <br />
11.{{COL}}: 1.59% <br />
12.{{ESP}}: 1.36% <br />
13.{{IND}}: 1.33% <br />
14.{{ITA}}: 1.05% <br />
15.{{PRY}}: 1.04% <br />
16.{{NED}}: 1.03% <br />
17.{{RUS}}: 0.83% <br />
18.{{KOR}}: 0.71% <br />
19.{{THA}}: 0.70% <br />
20.{{URU}}: 0.65% <br /><!-- }} -->
*'''Other Countries: 8.72%''' (2022)<ref>{{cite web|title=Where does Bolivia import from? (2022) |url=https://oec.world/en/visualize/tree_map/hs92/import/bol/show/all/2022/}}<!-- auto-translated from Spanish by Module:CS1 translator --></ref>
|current account = {{decrease}} −$2.375&nbsp;billion (2017 est.)<ref name="CIA World Factbook - Bolivia" />
|FDI             = {{plainlist|
*{{increase}} $12.31&nbsp;billion (31 December 2017 est.)<ref name="CIA World Factbook - Bolivia" />
*{{steady}} Abroad: $0 (31 December 2017 est.)<ref name="CIA World Factbook - Bolivia" />}}
|gross external debt = {{increaseNegative}} $12.81&nbsp;billion (31 December 2017 est.)<ref name="CIA World Factbook - Bolivia" />
|debt            = {{decreasePositive}} 24.5% of GDP (2019 est.)<ref name="CIA World Factbook - Bolivia" /> {{refn|group=note|data cover general government debt, and includes debt instruments issued by government entities other than the treasury; the data include treasury debt held by foreign entities; the data include debt issued by subnational entities}}
|balance         = −7.8% (of GDP) (2017 est.)<ref name="CIA World Factbook - Bolivia" />
|revenue         = 15.09&nbsp;billion (2017 est.)<ref name="CIA World Factbook - Bolivia" />
|expenses        = 18.02&nbsp;billion (2017 est.)<ref name="CIA World Factbook - Bolivia" />
|aid             = ''recipient:'' $726 million (2009 est.)<ref name="OECD">{{cite web|url=http://www.oecd.org/dataoecd/56/6/1867487.gif|publisher=[[Organisation for Economic Co-operation and Development]]|title=Aid Statistics Bolivia|access-date=4 February 2012}}</ref>
|credit          = B+ (Domestic)<br />B+ (Foreign)<br />B+ (T&C Assessment)<br />([[Standard & Poor's]])<ref>{{cite web |title= Sovereigns rating list |publisher=Standard & Poor's |url=http://www.standardandpoors.com/ratings/sovereigns/ratings-list/en/eu/?subSectorCode=39 |access-date=4 February 2012}}</ref>
|reserves        = {{increase}} $10.26&nbsp;billion (31 December 2017 est.)<ref name="CIA World Factbook - Bolivia" />
|cianame         = bolivia
|spelling        = US
}}
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.<ref name="World Bank">{{cite web|url= http://go.worldbank.org/RH4SUVWPZ0|archive-url= http://webarchive.loc.gov/all/20100616015815/http://go.worldbank.org/RH4SUVWPZ0|url-status= dead|archive-date= 16 June 2010|title= Bolivia Overview|access-date= 4 April 2013}}</ref> With a [[Human Development Index]] of 0.703, it is ranked 114th (high human development).<ref>{{cite web |url=http://hdr.undp.org/en/2018-update |title=Human Development Indices and Indicators: 2018 Statistical update |website=hdr.undp.org |publisher=[[United Nations Development Programme]] |access-date=15 October 2019 |archive-date=18 November 2018 |archive-url=https://web.archive.org/web/20181118122652/http://hdr.undp.org/en/2018-update |url-status=dead }}</ref> Driven largely by its natural resources, Bolivia has become a region leader in measures of economic growth, fiscal stability and foreign reserves,<ref name="Gustafson 2020 10">{{Cite book |last=Gustafson |first=Bret |title=Bolivia in the Age of Gas |publisher=Duke University Press |year=2020 |isbn=978-1-4780-1099-9 |pages=10}}</ref> although it remains a historically poor country.
The Bolivian economy has had a historic single-commodity focus.<ref name="loc">{{Cite web|date=January 2006|title=Country Profile: Bolivia|url=https://www.loc.gov/rr/frd/cs/profiles/Bolivia.pdf|access-date=November 5, 2020|publisher=[[Federal Research Division]], [[Library of Congress]]}} {{PD-notice}}</ref> From silver to [[tin]] to [[coca]], Bolivia has enjoyed only occasional periods of economic diversification.<ref name="loc" /> Political instability and difficult topography have constrained efforts to modernize the agricultural sector.<ref name="loc" /> Similarly, relatively low population growth coupled with low [[life expectancy]] has kept the labor supply in flux and prevented industries from flourishing.<ref name="loc" /> Rampant inflation and [[Corruption in Bolivia|corruption]] previously created development challenges,<ref name="loc" /> but in the early twenty-first century the fundamentals of its economy showed unexpected improvement, leading Moody's Investors Service to upgrade Bolivia's economic rating in 2010 from B2 to B1.<ref>{{cite news|url=https://www.reuters.com/article/bolivia-moodys-upgrade-idUSWNA593620101202|title=Moody's upgrades Bolivia credit rating to B1|publisher=Reuters|date=2 December 2010|access-date=1 July 2017|archive-date=24 September 2015|archive-url=https://web.archive.org/web/20150924150413/http://www.reuters.com/article/2010/12/02/bolivia-moodys-upgrade-idUSWNA593620101202|url-status=live}}</ref> The mining industry, especially the extraction of [[natural gas]] and [[zinc]], currently dominates Bolivia's export economy.<ref name="loc" />

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%.<ref>{{cite web|url=http://www.investigaction.net/Evo-Morales-en-route-pour-un/|title=Evo Morales en route pour un troisième mandat |website=Investig'Action |last=patrick |date=7 October 2014 }}</ref> The poverty rate declined from 22.23% in 2000 to 12.38% in 2010.<ref>{{cite web| url = https://www.sciencespo.fr/opalc/content/taux-de-pauvrete-bolivie| title = Taux de pauvreté Bolivie {{!}} Sciences Po Observatoire politique de l'Amérique latine et des Caraïbes| date = 19 September 2020}}</ref> Moreover, the [[Gini coefficient]] declined from 0.60 to 0.446.<ref>{{cite web| url = http://prensa-latina.cu/index.php?o=rn&id=34440&SEO=pobreza-en-bolivia-disminuyo-20-por-ciento-en-la-ultima-decada| title = NOTICIAS - Prensa Latina}}</ref> According to the Bolivian Institute of Foreign Trade, Bolivia had the lowest accumulated inflation of Latin America by October 2021.<ref>{{Cite web |date=2021-12-02 |title=Bolivia Has The Lowest Inflation in Latin America |url=https://kawsachunnews.com/bolivia-has-the-lowest-inflation-in-latin-america |access-date=2022-06-28 |website=Kawsachun News |language=en-US}}</ref><ref>{{Cite web |date=2022-05-26 |title=IMF recognizes Bolivia's strength in the face of Inflation - Prensa Latina |url=https://www.plenglish.com/news/2022/05/26/imf-recognizes-bolivias-strength-in-the-face-of-inflation/,%20https://www.plenglish.com/news/2022/05/26/imf-recognizes-bolivias-strength-in-the-face-of-inflation/ |access-date=2022-09-27 |language=en-US }}{{Dead link|date=August 2023 |bot=InternetArchiveBot |fix-attempted=yes }}</ref><ref>{{Cite web |title=Boletín IBCE Cifras: Inflación en Bolivia |url=https://ibce.org.bo/publicaciones-ibcecifras-pdf.php?id=994 |access-date=2022-10-26 |website=ibce.org.bo}}</ref> However, by late 2024 it had one of the highest rates of inflation in the region,<ref>{{cite news |last1=Flores |first1=Paola |last2=Debre |first2=Isabel |title=‘Everything is expensive!’ Bolivia faces a shocking economic collapse |url=https://apnews.com/article/bolivia-fuel-crisis-economy-arce-president-gas-b43cff9dcfebdca40d35aad6911f055f |access-date=17 March 2025 |work=AP News |date=28 November 2024}}</ref> amid a new, large-scale economic crisis.<ref>{{cite news |last1=Machicao |first1=Monica |title=As Bolivia's big state economic model slowly implodes, fear of 'total crisis' |url=https://www.reuters.com/world/americas/bolivias-big-state-economic-model-slowly-implodes-fear-total-crisis-2024-12-16/ |access-date=17 March 2025 |work=Reuters |date=16 Dec 2024}}</ref><ref>{{cite news |title=Economic turmoil in Bolivia fuels distrust in government and its 'failed coup' claim |url=https://www.npr.org/2024/07/01/nx-s1-5024699/bolivia-failed-coup-economic-turmoil-distrust-in-government |access-date=17 March 2025 |work=NPR |agency=The Associated Press |date=1 July 2024}}</ref>

== History ==
[[File:GDP_per_capita_development_in_Bolivia.svg|thumb|right|Historical GDP per capita development]]
Bolivia was a major mineral exporter during the colonial period.<ref name=":0">{{Citation |last=Klein |first=Herbert S. |title=Bolivia from the War of the Pacific to the Chaco War, 1880–1932 |date=1986 |work=The Cambridge History of Latin America: Volume 5: c.1870 to 1930 |volume=5 |pages=553–586 |editor-last=Bethell |editor-first=Leslie |url=https://www.cambridge.org/core/books/abs/cambridge-history-of-latin-america/bolivia-from-the-war-of-the-pacific-to-the-chaco-war-18801932/2B08A9A899AE7061C9463520E8E3AF7E |publisher=Cambridge University Press |doi=10.1017/chol9780521245173.017 |isbn=978-0-521-24517-3}}</ref> The turbulent independence period led to the collapse of the mining industry.<ref name=":0" /> By the 1840s, silver production was half that of 1790.<ref name=":0" /> In the decades following 1850, Bolivia experienced economic growth.<ref name=":0" /> Bolivia remained a primarily rural country into the 20th century.<ref name=":0" /><ref>{{Citation |title=THE AGES OF SILVER AND TIN, 1880–1932 |date=2011 |work=A Concise History of Bolivia |pages=144–177 |editor-last=Klein |editor-first=Herbert S. |url=https://www.cambridge.org/core/books/abs/concise-history-of-bolivia/ages-of-silver-and-tin-18801932/A1D2295FE79C8C5490644774676F1394 |series=Cambridge Concise Histories |edition=2 |publisher=Cambridge University Press |doi=10.1017/cbo9780511976964.008 |isbn=978-0-511-97696-4}}</ref> Tin production became Bolivia's main industry after 1900.<ref name=":0" />

The Bolivian economy grew rapidly between 1960 and 1977.<ref name="Kehoe-2019">{{Cite report |last1=Kehoe|first1=Timothy J|last2=Machicado|first2=Carlos Gustavo|last3=Peres-Cajías|first3=José|year=2019|title=The Monetary and Fiscal History of Bolivia, 1960–2017|series=Working Paper Series |url=http://www.nber.org/papers/w25523|doi=10.3386/w25523|doi-access=free}}</ref> According to one study, "persistent deficits and a fixed exchange rate policy during the 1970s led to a debt crisis that began in 1977. From 1977 to 1986, Bolivia lost almost all the gains in GDP per capita that it had achieved since 1960."<ref name="Kehoe-2019" /> After 1986, Bolivian economy began to grow again.<ref name="Kehoe-2019" /> Between 1998 and 2002, Bolivia experienced a financial crisis.<ref name="Kehoe-2019" />

Inflation has plagued, and at times crippled, the Bolivian economy since the 1970s.<ref name="loc" /> At one time in 1985 Bolivia experienced an annual inflation rate of more than 20,000 percent.<ref name="loc" /> Fiscal and monetary reform reduced the inflation rate to single digits by the 1990s, and in 2004 Bolivia experienced a manageable 4.9 percent rate of inflation.<ref name="loc" />
A major blow to the Bolivian economy came with a drastic fall in the price of tin during the early 1980s, which impacted one of Bolivia's main sources of income and one of its major mining industries.<ref>{{cite journal | last1=Crabtree | first1=J. |last2=Buffy |first2= G. |last3=Pearce |first3= J. | title=The Great Tin Crash: Bolivia and the World Tin Market | journal=Bulletin of Latin American Research | volume=7 | issue=1 | pages=174–175 |year=1988 | doi=10.2307/3338459 | jstor=3338459}}</ref>

Since 1985 the government of Bolivia has implemented a far-reaching program of macroeconomic stabilization and structural reform aimed at maintaining price stability, creating conditions for sustained growth, and alleviating scarcity. A major reform of the customs service has significantly improved transparency in this area. Parallel legislative reforms have locked into place market-liberal policies, especially in the hydrocarbon and telecommunication sectors, that have encouraged private investment. Foreign investors are accorded national treatment.<ref>{{cite web |url=https://2009-2017.state.gov/r/pa/ei/bgn/35751.htm#econ |title=Economy of Bolivia |publisher=US State Government |date=23 October 2012 |access-date=14 July 2013 }}</ref>

In April 2000 Hugo Banzer, the former president of Bolivia, signed a contract with Aguas del Tunari, a private consortium, to operate and improve the water supply in Bolivia's third-largest city, [[Cochabamba]]. Shortly thereafter, the company tripled the water rates in that city, an action which resulted in [[2000 Cochabamba protests|protests and rioting]] among those who could no longer afford clean water.<ref>{{cite magazine |last=Hattam |first=Jennifer |title=Who Owns Water?|magazine=Sierra|date=September 2001|volume=86|issue=5|url=http://www.sierraclub.org/sierra/200109/lol1.asp|access-date=14 July 2013|archive-url=https://web.archive.org/web/20130825105255/http://www.sierraclub.org/sierra/200109/lol1.asp|archive-date=25 August 2013|url-status=live}}</ref><ref>{{cite web |url=https://www.pbs.org/frontlineworld/stories/bolivia/ |title=Leasing the Rain |publisher=PBS Frontline/World |date=June 2002 |access-date=14 July 2013 |archive-url=https://web.archive.org/web/20130825104154/http://www.pbs.org/frontlineworld/stories/bolivia/ |archive-date=25 August 2013 |url-status=live}}</ref> Amidst Bolivia's nationwide economic collapse and growing national unrest over the state of the economy, the Bolivian government was forced to withdraw the water contract.

Once Bolivia's government depended heavily on foreign assistance to finance development projects and to pay the public staff. At the end of 2002, the government owed $4.5 billion to its foreign [[creditor]]s, with $1.6 billion of this amount owed to other governments and most of the balance owed to multilateral development banks. Most payments to other governments have been rescheduled on several occasions since 1987 through the [[Paris Club]] mechanism. External creditors have been willing to do this because the Bolivian government has generally achieved the monetary and fiscal targets set by IMF programs since 1987, though economic crises have undercut Bolivia's normally good record. However, by 2013 the foreign assistance is just a fraction of the government budget thanks to tax collection mainly from the profitable exports to Brazil and Argentina of natural gas.
Parallel legislative reforms have locked into place market-oriented policies, especially in the hydrocarbon and telecommunication sectors, that have encouraged private investment. Foreign investors are accorded national treatment, and foreign ownership of companies enjoys virtually no restrictions in Bolivia. While the capitalization program was successful in vastly boosting foreign direct investment (FDI) in Bolivia (US$7&nbsp;billion in stock during 1996–2002), FDI later decreased as investors completed their capitalization contract obligations.

In 1996 three units of the Bolivian state oil corporation ([[YPFB]]) involved in [[hydrocarbon exploration]], production, and transportation were capitalized, facilitating the construction of a gas pipeline to Brazil. The government has a long-term sales agreement to sell 30 million cubic metres a day (MMcmd) of natural gas to Brazil through 2019. The Brazil pipeline carried about 21 MMcmd in 2000. Bolivia has the second-largest natural gas reserves in South America, and its current domestic use and exports to Brazil account for just a small portion of its potential production. Natural gas exports to Argentina resumed in 2004 at four MMcmd.

In April 2000 violent protests over plans to privatize the water utility in the city of [[Cochabamba]] led to nationwide disturbances. The government eventually cancelled the contract without compensation to the investors, returning the utility to public control. The foreign investors in this project pursued an investment dispute case against Bolivia for its actions. A similar situation occurred in 2005 in the cities of El Alto and La Paz.

Protest and widespread [[Bolivian gas conflict|opposition to exporting gas]] through Chile led to the resignation of President [[Sanchez de Lozada]] in October 2003. The government held a binding referendum in 2004 on plans to export natural gas and on hydrocarbons law reform. By May 2005, the carbons law draft was being considered by the Senate.

According to the data of the [[International Monetary Fund]], the [[World Bank]], as well as several international Institutes such as [[United Nations Economic Commission for Latin America and the Caribbean|ECLAC]], during the period 2006 to 2019 (period of the presidency of [[Evo Morales]] and [[Álvaro García Linera|Alvaro Garcia Linera]]) the economy of Bolivia quadrupled from a value of 9,573 billion dollars to 42,401&nbsp;billion dollars, this is due in large part to the policy of nationalization of Natural Resources, the stability of the exchange rate, the incentive of the domestic market, strong public investment in infrastructure and industrialization of natural resources such as gas and lithium. Similarly, according to studies by the World Bank and [[United Nations Economic Commission for Latin America and the Caribbean|ECLAC]], during the period 2006–2019, Bolivia experienced a marked reduction in poverty and extreme poverty, resulting in a reduction of the population living in extreme poverty from 38.2% to 15.2%.<ref>{{Cite web|url=https://www.ine.gob.bo/index.php/component/k2/item/3383-bolivia-entre-los-paises-de-la-region-que-mas-redujo-la-pobreza|title=Bolivia is the country that most reduced poverty|website=INE Bolivia|date=12 March 2019 }}</ref> In terms of [[Human Development Index|HDI]], according to the [[United Nations Development Programme|UNDP]] World Human Development Report, Bolivia in 2018 for the first time became classified as a "high human development Country",<ref>{{Cite web|url=https://www.bo.undp.org/content/bolivia/es/home/presscenter/articles/2019/bolivia-es-clasificado-por-primera-vez-como-pais-de-desarrollo-h.html|title=Bolivia is classified as a high human development country|publisher=UNDP}}</ref> reaching an HDI indicator of 0.703 and rising to the 114th position of 189 countries and territories.

==Macroeconomy==

===Main indicators===
Bolivia's 2016 gross domestic product referred to PPP totaled $78.35&nbsp;billion and in the official exchange $35.69&nbsp;billion. Its standard of living, as measured in GDP in PPP per capita was US$7,191. Economic growth was about 5.2% a year and inflation was 4.5% in 2012. Bolivia experienced a [[budget surplus]] of about 1.5% of GDP in 2012. Expenditures were nearly US$12.2&nbsp;billion while revenues amounted to about US$12.6&nbsp;billion. The government runs surplus accounts since 2005.

The Bolivian currency is the boliviano (ISO 4217: BOB; symbol: Bs.) One boliviano is divided into 100 centavos. The boliviano replaced the [[Bolivian peso]] at a rate of one million to one in 1987 after many years of rampant inflation. At that time, 1 new boliviano was roughly equivalent to 1 U.S. dollar. At the end of 2011 the boliviano was only worth around 0.145 U.S. Dollar.<ref>{{cite web|url=http://es.exchange-rates.org/history/USD/BOB/G/90 |title=Exchange Rate Boliviano}}</ref> Annual interest rates in 2010 had decreased steadily to 9.9 percent<ref name="World Bank" /> from more than 50 percent before 1997.

Bolivia's [[human development index]] was reported at 0.675, comprising a health index of 0.740, an education index of 0.743 and a GNI index of 0.530, ranking within the group of medium human development. "Between 1980 and 2012 Bolivia (Plurinational State of)'s HDI rose by 1.3% annually from 0.489 to 0.675 today, which gives the country a rank of 108 out of 187 countries with comparable data. The HDI of Latin America and the Caribbean as a region increased from 0.574 in 1980 to 0.741 today, placing Bolivia (Plurinational State of) below the regional average."<ref name="UNDP">{{cite web|url=http://hdr.undp.org/sites/default/files/hdr_2015_statistical_annex.pdf|title= Human Development Report 2015 – Human development statistical annex|publisher=[[Human Development Report|HDRO (Human Development Report Office)]] [[United Nations Development Programme]]|pages=127–130|access-date=20 October 2015}}</ref>

The following table shows the main economic indicators in 1980–2023 (with IMF staff estimates for 2024–2028). Inflation below 5% is in green.<ref>{{Cite web |title=Report for Selected Countries and Subjects |url=https://www.imf.org/en/Publications/WEO/weo-database/2023/October/weo-report |access-date=2024-02-26 |publisher=IMF |language=en}}</ref> 
{{static row numbers}}{{sticky header}}
{| class="wikitable sortable sticky-header" style="text-align:center;"
! Year !! GDP<br><small>(in bn. US$PPP)</small> !! GDP per capita<br><small>(in US$ PPP)</small> !! GDP<br><small>(in bn. US$nominal)</small> !! GDP per capita<br><small>(in US$ nominal)</small> !! GDP growth<br><small>(real)</small> !! Inflation rate<br><small>(in Percent)</small> !! Unemployment<br><small>(in Percent)</small> !! Government debt<br><small>(in % of GDP)</small>
|-
| 1980 || 10.7 || 2,072.1 || 3.6 || 695.5 || {{Increase}}0.6% || {{IncreaseNegative}}47.1% || n/a || n/a
|-
| 1981 || {{Increase}}11.7 || {{Increase}}2,101.4 || {{Decrease}}3.4 || {{Decrease}}615.7 || {{Increase}}0.3% || {{IncreaseNegative}}32.1% || n/a || n/a
|-
| 1982 || {{Increase}}12.0 || {{Decrease}}2,099.5 || {{Increase}}3.8 || {{Increase}}668.6 || {{Decrease}}-3.9% || {{IncreaseNegative}}123.6% || n/a || n/a
|-
| 1983 || {{Decrease}}11.9 || {{Decrease}}2,050.7 || {{Decrease}}3.6 || {{Decrease}}619.9 || {{Decrease}}-4.0% || {{IncreaseNegative}}275.6% || n/a || n/a
|-
| 1984 || {{Increase}}12.3 || {{Increase}}2,077.1 || {{Increase}}3.8 || {{Increase}}631.2 || {{Decrease}}-0.2% || {{IncreaseNegative}}1281.3% || n/a || n/a
|-
| 1985 || {{Increase}}12.5 || {{Decrease}}2,063.8 || {{Increase}}4.1 || {{Increase}}668.9 || {{Decrease}}-1.7% || {{IncreaseNegative}}11749.6% || n/a || n/a
|-
| 1986 || {{Decrease}}12.4 || {{Decrease}}2,009.2 || {{Decrease}}4.0 || {{Decrease}}640.9 || {{Decrease}}-2.6% || {{IncreaseNegative}}273.4% || n/a || n/a
|-
| 1987 || {{Increase}}13.1 || {{Increase}}2,066.5 || {{Increase}}4.3 || {{Increase}}683.6 || {{Increase}}2.5% || {{IncreaseNegative}}14.6% || n/a || n/a
|-
| 1988 || {{Increase}}13.9 || {{Increase}}2,156.6 || {{Increase}}4.6 || {{Increase}}712.1 || {{Increase}}2.9% || {{IncreaseNegative}}16.0% || n/a || n/a
|-
| 1989 || {{Increase}}15.0 || {{Increase}}2,278.5 || {{Increase}}4.7 || {{Increase}}715.5 || {{Increase}}3.8% || {{IncreaseNegative}}15.2% || n/a || n/a
|-
| 1990 || {{Increase}}16.3 || {{Increase}}2,422.8 || {{Increase}}4.9 || {{Increase}}723.4 || {{Increase}}4.6% || {{IncreaseNegative}}17.1% || n/a || n/a
|-
| 1991 || {{Increase}}17.7 || {{Increase}}2,582.7 || {{Increase}}5.3 || {{Increase}}777.9 || {{Increase}}5.3% || {{IncreaseNegative}}21.4% || n/a || n/a
|-
| 1992 || {{Increase}}18.4 || {{Increase}}2,630.2 || {{Increase}}5.6 || {{Increase}}804.7 || {{Increase}}1.6% || {{IncreaseNegative}}13.0% || n/a || n/a
|-
| 1993 || {{Increase}}19.7 || {{Increase}}2,729.5 || {{Increase}}5.7 || {{Decrease}}795.1 || {{Increase}}4.3% || {{IncreaseNegative}}8.5% || n/a || n/a
|-
| 1994 || {{Increase}}21.0 || {{Increase}}2,836.8 || {{Increase}}6.0 || {{Increase}}804.7 || {{Increase}}4.7% || {{IncreaseNegative}}7.9% || n/a || n/a
|-
| 1995 || {{Increase}}22.5 || {{Increase}}2,972.5 || {{Increase}}6.7 || {{Increase}}885.7 || {{Increase}}4.7% || {{IncreaseNegative}}10.2% || n/a || n/a
|-
| 1996 || {{Increase}}23.9 || {{Increase}}3,097.2 || {{Increase}}7.4 || {{Increase}}955.6 || {{Increase}}4.4% || {{IncreaseNegative}}12.4% || n/a || n/a
|-
| 1997 || {{Increase}}25.5 || {{Increase}}3,242.3 || {{Increase}}7.9 || {{Increase}}1,005.9 || {{Increase}}5.0% || {{Increase}}4.7% || n/a || n/a
|-
| 1998 || {{Increase}}27.1 || {{Increase}}3,377.0 || {{Increase}}8.5 || {{Increase}}1,057.7 || {{Increase}}5.0% || {{IncreaseNegative}}7.7% || n/a || n/a
|-
| 1999 || {{Increase}}27.6 || {{Decrease}}3,374.6 || {{Decrease}}8.3 || {{Decrease}}1,010.6 || {{Increase}}0.4% || {{Increase}}2.2% || n/a || n/a
|-
| 2000 || {{Increase}}28.9 || {{Increase}}3,470.1 || {{Increase}}8.4 || {{Decrease}}1,005.4 || {{Increase}}2.5% || {{Increase}}4.6% || 7.5% || 66.9%
|-
| 2001 || {{Increase}}30.1 || {{Increase}}3,539.3 || {{Decrease}}8.2 || {{Decrease}}959.8 || {{Increase}}1.7% || {{Increase}}1.6% || {{IncreaseNegative}}8.5% || {{DecreasePositive}}60.0%
|-
| 2002 || {{Increase}}31.3 || {{Increase}}3,617.8 || {{Decrease}}7.9 || {{Decrease}}915.0 || {{Increase}}2.5% || {{Increase}}0.9% || {{IncreaseNegative}}8.7% || {{IncreaseNegative}}69.1%
|-
| 2003 || {{Increase}}32.8 || {{Increase}}3,717.5 || {{Increase}}8.1 || {{Increase}}918.5 || {{Increase}}2.7% || {{Increase}}3.3% || {{IncreaseNegative}}8.7% || {{IncreaseNegative}}74.1%
|-
| 2004 || {{Increase}}35.0 || {{Increase}}3,907.1 || {{Increase}}8.8 || {{Increase}}979.6 || {{Increase}}4.2% || {{Increase}}4.4% || {{DecreasePositive}}8.4% || {{IncreaseNegative}}89.8%
|-
| 2005 || {{Increase}}37.7 || {{Increase}}4,134.2 || {{Increase}}9.6 || {{Increase}}1,049.1 || {{Increase}}4.4% || {{IncreaseNegative}}5.4% || {{DecreasePositive}}8.1% || {{DecreasePositive}}82.2%
|-
| 2006 || {{Increase}}40.7 || {{Increase}}4,387.7 || {{Increase}}11.5 || {{Increase}}1,240.9 || {{Increase}}4.8% || {{Increase}}4.3% || {{DecreasePositive}}8.0% || {{DecreasePositive}}54.4%
|-
| 2007 || {{Increase}}43.7 || {{Increase}}4,632.3 || {{Increase}}13.2 || {{Increase}}1,399.8 || {{Increase}}4.6% || {{IncreaseNegative}}6.7% || {{DecreasePositive}}7.7% || {{DecreasePositive}}40.0%
|-
| 2008 || {{Increase}}47.3 || {{Increase}}4,930.1 || {{Increase}}16.8 || {{Increase}}1,749.2 || {{Increase}}6.1% || {{IncreaseNegative}}14.0% || {{DecreasePositive}}4.4% || {{DecreasePositive}}36.8%
|-
| 2009 || {{Increase}}49.3 || {{Increase}}5,050.8 || {{Increase}}17.5 || {{Increase}}1,789.6 || {{Increase}}3.4% || {{Increase}}3.3% || {{IncreaseNegative}}4.9% || {{IncreaseNegative}}39.2%
|-
| 2010 || {{Increase}}51.9 || {{Increase}}5,235.0 || {{Increase}}19.8 || {{Increase}}1,994.9 || {{Increase}}4.1% || {{Increase}}2.5% || {{DecreasePositive}}4.4% || {{DecreasePositive}}37.6%
|-
| 2011 || {{Increase}}55.8 || {{Increase}}5,533.2 || {{Increase}}24.1 || {{Increase}}2,394.8 || {{Increase}}5.2% || {{IncreaseNegative}}9.9% || {{DecreasePositive}}3.8% || {{DecreasePositive}}35.3%
|-
| 2012 || {{Increase}}61.5 || {{Increase}}6,002.0 || {{Increase}}27.3 || {{Increase}}2,664.6 || {{Increase}}5.1% || {{Increase}}4.5% || {{DecreasePositive}}3.2% || {{IncreaseNegative}}35.4%
|-
| 2013 || {{Increase}}69.8 || {{Increase}}6,604.7 || {{Increase}}30.9 || {{Increase}}2,920.5 || {{Increase}}6.8% || {{IncreaseNegative}}5.7% || {{IncreaseNegative}}4.0% || {{IncreaseNegative}}36.1%
|-
| 2014 || {{Increase}}75.6 || {{Increase}}7,039.8 || {{Increase}}33.2 || {{Increase}}3,096.8 || {{Increase}}5.5% || {{IncreaseNegative}}5.8% || {{Steady}}4.0% || {{IncreaseNegative}}37.6%
|-
| 2015 || {{Increase}}77.5 || {{Increase}}7,116.5 || {{Steady}}33.2 || {{Decrease}}3,050.6 || {{Increase}}4.9% || {{Increase}}4.1% || {{Steady}}4.0% || {{IncreaseNegative}}40.9%
|-
| 2016 || {{Increase}}82.7 || {{Increase}}7,489.9 || {{Increase}}34.2 || {{Increase}}3,095.0 || {{Increase}}4.3% || {{Increase}}3.6% || {{Steady}}4.0% || {{IncreaseNegative}}46.5%
|-
| 2017 || {{Increase}}94.3 || {{Increase}}8,406.7 || {{Increase}}37.8 || {{Increase}}3,368.8 || {{Increase}}4.2% || {{Increase}}2.8% || {{Steady}}4.0% || {{IncreaseNegative}}51.3%
|-
| 2018 || {{Increase}}100.6 || {{Increase}}8,841.1 || {{Increase}}40.6 || {{Increase}}3,565.5 || {{Increase}}4.2% || {{Increase}}2.3% || {{Steady}}4.0% || {{IncreaseNegative}}53.9%
|-
| 2019 || {{Increase}}104.7 || {{Increase}}9,128.6 || {{Increase}}41.2 || {{Increase}}3,591.4 || {{Increase}}2.2% || {{Increase}}1.8% || {{Steady}}4.0% || {{IncreaseNegative}}59.3%
|-
| 2020 || {{Decrease}}96.8 || {{Decrease}}8,323.6 || {{Decrease}}36.9 || {{Decrease}}3,172.6 || {{Decrease}}-8.7% || {{Increase}}0.9% || {{IncreaseNegative}}8.0% || {{IncreaseNegative}}78.0%
|-
| 2021 || {{Increase}}107.3 || {{Increase}}9,095.6 || {{Increase}}40.7 || {{Increase}}3,449.4 || {{Increase}}6.1% || {{Increase}}1.7% || {{DecreasePositive}}6.9% || {{IncreaseNegative}}81.4%
|-
| 2022 || {{Increase}}118.8 || {{Increase}}9,936.5 || {{Increase}}44.3 || {{Increase}}3,705.3 || {{Increase}}3.5% || {{Increase}}3.0% || {{DecreasePositive}}4.7% || {{IncreaseNegative}}80.0%
|-
| 2023 || {{Increase}}125.4 || {{Increase}}10,340.3 || {{Increase}}46.8 || {{Increase}}3,857.8 || {{Increase}}1.8% || {{Increase}}4.4% || {{IncreaseNegative}}4.9% || {{IncreaseNegative}}80.8%
|-
| ''2024''|| ''{{Increase}}130.5''|| ''{{Increase}}10,624.8''|| ''{{Increase}}49.7''|| ''{{Increase}}4,045.4''|| ''{{Increase}}1.8%''|| ''{{Increase}}3.8%''|| ''{{IncreaseNegative}}5.0%''|| ''{{IncreaseNegative}}81.4%''
|-
| ''2025''|| ''{{Increase}}136.0''|| ''{{Increase}}10,924.3''|| ''{{Increase}}52.7''|| ''{{Increase}}4,232.1''|| ''{{Increase}}2.1%''|| ''{{Increase}}3.8%''|| ''{{IncreaseNegative}}5.1%''|| ''{{IncreaseNegative}}82.0%''
|-
| ''2026''|| ''{{Increase}}141.7''|| ''{{Increase}}11,214.4''|| ''{{Increase}}55.9''|| ''{{Increase}}4,423.8''|| ''{{Increase}}2.2%''|| ''{{Increase}}3.8%''|| ''{{Steady}}5.1%''|| ''{{IncreaseNegative}}82.1%''
|-
|''2027''
|''{{Increase}}147.6''
|''{{Increase}}11,510.7''
|''{{Increase}}59.4''
|''{{Increase}}4,628.6''
|''{{Increase}}2.3%''
|''{{Increase}}3.8%''
|''{{IncreaseNegative}}5.2%''
|''{{DecreasePositive}}81.6%''
|-
|''2028''
|''{{Increase}}153.8''
|''{{Increase}}11,817.7''
|''{{Increase}}63.0''
|''{{Increase}}4,842.9''
|''{{Increase}}2.3%''
|''{{Increase}}3.8%''
|''{{Steady}}5.2%''
|''{{DecreasePositive}}80.9%''
|}

==Sectors==

===Primary sector===
[[File:Chenopodium quinoa in Cachilaya, Bolivia, Lake Titicaca.JPG|thumb|[[Quinoa]] field near [[Lake Titicaca]]. Bolivia is the world's second largest producer of quinoa.]]

====Agriculture and forestry====
{{main |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.<ref name="loc" /> Combined, these activities employ nearly 44 percent of Bolivia's workers.<ref name="loc" /> Most agricultural workers are engaged in subsistence farming—the dominant economic activity of the highlands region.<ref name="loc" /> Agricultural production in Bolivia is complicated by both the country's [[topography]] and climate.<ref name="loc" /> High elevations make farming difficult, as do the [[El Niño]] weather patterns and seasonal flooding.<ref name="loc" /> Bolivia's agricultural GDP continues to rise but has attained only a rather modest average growth rate of 2.8 percent annually since 1991.<ref name="loc" />

Bolivia's most lucrative agricultural product continues to be coca, of which Bolivia is currently the world's third largest cultivator<ref name="loc" /> after Colombia and Peru, with an estimated 29,500 hectares under cultivation in 2007, slightly higher than the previous year.{{Citation needed|date=November 2020}} 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.{{Citation needed|date=November 2020}} The Bolivian government, in response to international pressure, worked to restrict coca cultivation.<ref name="loc" /> However, eradication efforts have hampered by the lack of a suitable replacement crop for rural communities that have cultivated coca for generations.<ref name="loc" /> The [[Evo Morales|Morales]] government turned back some of the results which was obtained in previous years.{{Citation needed|date=November 2020}}

Since 2001 Bolivia's leading legal agricultural export has been [[soybeans]].<ref name="loc" /> Additionally, cotton, coffee, and [[sugarcane]] have been viable exports for Bolivia.<ref name="loc" /> For domestic consumption, [[Maize|corn]], wheat, and potatoes are the crops of choice of Bolivian farmers.<ref name="loc" /> Despite its vast forests, Bolivia has only a minor [[timber industry]].<ref name="loc" /> In 2003 timber accounted for only 3.5 percent of export earnings.<ref name="loc" /> The Forestry Law of 1996 imposed a tax on sawn [[lumber]] and consequently cut Bolivian lumber exports significantly.<ref name="loc" /> The tax was used to establish the Forestry Stewardship Council, which has been only minimally successful in [[forest restoration]] efforts and eliminating [[illegal logging]].<ref name="loc" /> With increased efficiency, Bolivia could likely expand the profitability of its forest resources, while still protecting them from [[overexploitation]].<ref name="loc" /> Bolivia has a small fishing industry that taps the country's freshwater lakes and streams.<ref name="loc" /> The annual catch averages about 6,000 tons.<ref name="loc" />

In 2018, Bolivia produced 9.6 million tons of [[sugarcane]], 2.9 million tons of [[soy]], 1.2 million tons of [[maize]], 1.1 million tons of [[potato]], 1 million tons of [[sorghum]], 700 thousand tons of [[banana]], 541 thousand tons of [[rice]], 301 thousand tons of [[wheat]], in addition to smaller yields of other agricultural products, such as [[tangerine]], [[cassava]], [[Orange (fruit)|orange]], [[beans]], [[sunflower seed]], [[cotton]] etc.<ref>[http://www.fao.org/faostat/en/#data/QC/ Bolivia production in 2018, by FAO]</ref>
[[File:Ivirgarzama, Bolívia´s Puerto Villarroel county.jpg|thumb|Satellite view of coca leaf and tropical fruit plantations in the [[Ivirgarzama|Ivirgazama]] region of Bolivia. Several tropical areas in the country have experienced major [[deforestation]]. ]]
Agriculture and forestry is also the lifeline for multitudes of small villages which house a majority of the population. Small village economy stumbled and dwindled from the late twentieth century due to aggravating environmental problems including [[deforestation]] and consequent [[soil degradation]],<ref>{{Cite web|title=Environmental Problems|url=http://www.bolivia-guide.com/about-bolivia.php?id=64&tid=td2|access-date=14 September 2011|archive-url=https://web.archive.org/web/20120402113429/http://www.bolivia-guide.com/about-bolivia.php?id=64&tid=td2|archive-date=2 April 2012|url-status=dead}}</ref> water pollution, loss of biodiversity, and so on. Besides, political and social problems also greatly obstruct the growth of small village development: political turmoil, post-civil war predicament and burgeoning fiscal deficit have strangled most investment incentives;<ref>{{Cite web|title=Economic Overview of Bolivia|url=http://www.fedbrain.com/world-economy/bolivia/index.html|access-date=14 September 2011|archive-url=https://web.archive.org/web/20111019234739/http://www.fedbrain.com/world-economy/bolivia/index.html|archive-date=19 October 2011|url-status=dead}}</ref> corruption and manipulation of water supply by foreign companies have greatly undermined the availability and efficiency of local market, leaving little profits for village farmers and producers.<ref>{{cite news|title=Bleak Future for Bolivia's Economy|url=http://news.bbc.co.uk/2/hi/business/1400337.stm | publisher=BBC News | date=21 June 2001}}</ref> Furthermore, the global market poses a threat to the stability and sustainability of Bolivia's frail economy: "a drop in export prices, reduction of informal trade" and low-skilled over-homogenized local products have further worsened the bleak condition of Bolivia's microeconomic activities, making it almost impossible for village farms and factories to make a living from trading with the world.<ref>{{Cite web|title=Microfinance & Microeconomics Opportunities in Bolivia|url=http://www.fsdinternational.org/country/bolivia/mfopps|url-status=dead|archive-url=https://web.archive.org/web/20110929100709/http://www.fsdinternational.org/country/bolivia/mfopps|archive-date=29 September 2011}}</ref> Dwindling profits and surging cost of production have made small village economy in Bolivia extremely vulnerable and unstable; as a result, unemployment increases and small business is on the verge of bankruptcy, which in return made government intervention very inefficient and deferred many governmental initiatives and attempts to improve the condition.

====Mining====
{{main | Mining in Bolivia}}
[[File:Bolivia Resource Map.png|thumbnail|"Map of Bolivia, Showing Forest and Agriculture Areas, and Mineral Localities" from 1912]]
[[File:Cerro_ricco.jpg|left|thumb|[[Cerro Rico]] in [[Potosí Department|Potosi]], still a major silver mine. Bolivia is the world's 8th largest producer of [[silver]].]]
In 2019, the country was the 8th largest world producer of [[silver]];<ref>[https://pubs.usgs.gov/periodicals/mcs2021/mcs2021-silver.pdf USGS Silver Production Statistics]</ref> 4th largest world producer of [[boron]];<ref>[https://pubs.usgs.gov/periodicals/mcs2021/mcs2021-boron.pdf USGS Boron Production Statistics]</ref> 5th largest world producer of [[antimony]];<ref>[https://pubs.usgs.gov/periodicals/mcs2021/mcs2021-antimony.pdf USGS Antimony Production Statistics]</ref> 5th largest world producer of [[tin]];<ref>[https://pubs.usgs.gov/periodicals/mcs2021/mcs2021-tin.pdf USGS Tin Production Statistics]</ref> 6th largest world producer of [[tungsten]];<ref>[https://pubs.usgs.gov/periodicals/mcs2021/mcs2021-tungsten.pdf USGS Tungsten Production Statistics]</ref> 7th largest producer of [[zinc]],<ref>[https://pubs.usgs.gov/periodicals/mcs2021/mcs2021-zinc.pdf USGS ZincProduction Statistics]</ref> and the 8th largest producer of [[lead]].<ref>[https://pubs.usgs.gov/periodicals/mcs2021/mcs2021-lead.pdf USGS Lead Production Statistics]</ref>

Mining continues to be vital to Bolivia's economy.<ref name="loc" /> The collapse of the world tin market in the 1980s led to a restructuring of the industry.<ref name="loc" /> The state dramatically reduced its control and presently operates only a small portion of mining activities.<ref name="loc" /> Small-scale operations, often with low productivity, employ many former state miners.<ref name="loc" /> Natural gas has supplanted [[tin]] and silver as the country's most valuable natural commodity.<ref name="loc" /> A discovery in 1997 confirmed a tenfold gain in Bolivia's known natural gas reserves.<ref name="loc" /> 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.<ref name="loc" /> Although the world tin market has re-emerged, Bolivia now faces stiff competition from Southeast Asian countries producing lower-cost alluvial tin.<ref name="loc" /> Gold and silver production has increased dramatically over the past decade.<ref name="loc" /> Annually, as of 2002 Bolivia extracted and exported more than 11,000 kilograms of gold and 461 tons of silver.<ref name="loc" /> Additionally, Bolivia has increased zinc production, extracting more than 100,000 tons each year.<ref name="loc" /> Other metals excavated include [[antimony]], iron, and [[tungsten]].<ref name="loc" />
[[File:Lithium mine at Bolivia´s Uyuni Salt Flat, on a CBERS4 MUX yesterday´s image.jpg|thumb|Lithium mine in the [[Salar de Uyuni]]]]
Most of Bolivia's gas comes from megafields located in San Alberto, San Antonio, Margarita, and Incahuasi.<ref name="Gustafson 2020 p6">{{Cite book |last=Gustafson |first=Bret |title=Bolivia in the Age of Gas |publisher=Duke University Press |year=2020 |isbn=9781478010999 |pages=6}}</ref> These areas are in the territory of the indigenous [[Guaraní people|Guarani]] people, and the region is frequently viewed as a remote backwater by non-residents.<ref name="Gustafson 2020 p6" />

=====Lithium=====
{{Main|Lithium mining in Bolivia}}
According to the [[United States Geological Survey]], Bolivia has 9 million tons of [[lithium]],<ref name="Jaskula-2019">{{Cite journal|last=Jaskula|first=Brian W.|date=February 2019|title=Lithium|url=https://prd-wret.s3-us-west-2.amazonaws.com/assets/palladium/production/atoms/files/mcs-2019-lithi.pdf|journal=Mineral Commodity Summaries|publisher=[[United States Geological Survey|U.S. Geological Survey]]|pages=98|access-date=13 November 2019|archive-date=18 January 2021|archive-url=https://web.archive.org/web/20210118000126/https://prd-wret.s3-us-west-2.amazonaws.com/assets/palladium/production/atoms/files/mcs-2019-lithi.pdf|url-status=dead}}</ref> which can be used to make [[lithium-ion battery|lithium batteries]], used in hybrid and electric vehicles in addition to huge numbers of smaller batteries.<ref name="Seattle Times 2009-02-03">{{cite web |url=https://www.seattletimes.com/nation-world/bolivia-the-saudi-arabia-of-lithium/ |title=Bolivia: The Saudi Arabia of lithium? |newspaper=Seattle Times |agency=The New York Times|date=3 February 2009|first=Simon|last=Romero|access-date= 29 September 2017}}</ref> At 14.5%, this is the second-largest known concentration of lithium in any country; Argentina has 14.8&nbsp;million known tons of lithium, Chile has 8.5&nbsp;million tons, Australia has 7.7&nbsp;million tons, and the United States has 6.8&nbsp;million tons.<ref name="Jaskula-2019" /> These large deposits are located in desert regions farmed by indigenous groups, who claim their share of the profits made from their natural resources.<ref name="Seattle Times 2009-02-03" /> Bolivian President Evo Morales favored national, rather than foreign, ownership of natural resources, and nationalized the country's oil and natural gas reserves.<ref name="Seattle Times 2009-02-03" />

Mining the mineral deposits would involve disturbing the country's salt flats (called [[Salar de Uyuni]]), an important natural feature which boosts tourism in the region. The government does not want to destroy this unique natural landscape to meet the rising world demand for lithium.<ref>{{cite news| url=http://news.bbc.co.uk/1/hi/business/7607624.stm | publisher=BBC News | title=Bolivia's lithium mining dilemma | date=10 September 2008}}</ref>

In January 2013 Bolivia opened a lithium production plant in Uyuni, producing mainly potassium chloride.<ref>{{cite web|url=http://blogs.ft.com/beyond-brics/2013/01/07/bolivia-the-saudi-arabia-of-lithium/|title=Bolivia: the Saudi Arabia of lithium?|work=Financial Times|access-date=11 June 2015}}</ref><ref>{{cite web|url=http://news.nationalgeographic.com/news/energy/2013/05/pictures/130501-bolivia-lithium-reserves-pictures/|archive-url=https://web.archive.org/web/20130505104914/http://news.nationalgeographic.com/news/energy/2013/05/pictures/130501-bolivia-lithium-reserves-pictures/|url-status=dead|archive-date=5 May 2013|title=Pictures: Bolivia Seeks Economic Energy in Vast Lithium Stores|author=Photograph Sergio Goya, DPA/Corbis|access-date=11 June 2015}}</ref> Also, the Bolivian government signed intentions to develop not only lithium extraction but also lithium-ion battery production with numerous countries, especially from the [[Asia Pacific region]].

In 2019, Bolivia had signed a deal with German firm ACISA to develop a joint partnership with the Bolivian state-owned YLB for developing extraction and processing of lithium at [[Salar de Uyuni]]. The deal was later cancelled after long-running protests by locals over the perceived lack of local benefits and royalties of the project.<ref>{{Cite web|title=Bolivia scraps joint lithium project with German company {{!}} DW {{!}} 04.11.2019|url=https://www.dw.com/en/bolivia-scraps-joint-lithium-project-with-german-company/a-51100873|access-date=2021-05-17|publisher=Deutsche Welle|language=en-GB}}</ref> Bolivia's state lithium YLB also created a joint venture together with the Chinese Xinjiang TBEA Group to explore extraction of lithium and other materials from the Coipasa and Pastos Grandes salt flats.<ref>{{Cite news|last=Ramos|first=Daniel|date=2019-02-06|title=Bolivia picks Chinese partner for $2.3 billion lithium projects|language=en|publisher=Reuters|url=https://www.reuters.com/article/us-bolivia-lithium-china-idUSKCN1PV2F7|access-date=2021-05-17}}</ref><ref>{{Cite web|title=Bolivia: will the ousting of Morales open lithium to foreign investment?|url=https://www.mining-technology.com/features/bolivia-will-the-ousting-of-morales-open-lithium-to-foreign-investment/|access-date=2021-05-17|website=mining-technology.com|date=2 March 2020 |language=en-GB}}</ref>
It is thought that due to the importance of lithium for batteries for [[electric vehicle]]s and stabilization of electric grids with large proportions of intermittent [[Renewable energy|renewables]] in the electricity mix, Bolivia could be strengthened geopolitically. However, this perspective has also been criticized for underestimating the power of economic incentives for expanded production in other parts of the world.<ref>{{Cite journal |last=Overland |first=Indra |date=1 March 2019 |title=The geopolitics of renewable energy: Debunking four emerging myths |journal=Energy Research & Social Science |volume=49 |pages=36–40 |doi=10.1016/j.erss.2018.10.018 |issn=2214-6296 |doi-access=free|bibcode=2019ERSS...49...36O }}</ref>

===Industry and manufacturing===

{{see also|Cement industry in Bolivia}}
Annually, manufacturing accounted for in approximately 18% of Bolivia's gross domestic product between 1995 and 2005.<ref name="loc" /> The share of industry as a whole (including the mining industry) to the GDP increased from 30 percent in 2000 to 37.3 percent in 2010.<ref>{{Citation |last=Cruces |first=Guillermo |title=Bolivia |date=2017-05-18 |work=Growth, Employment, and Poverty in Latin America |pages=0 |editor-last=Cruces |editor-first=Guillermo |url=https://academic.oup.com/book/26687/chapter/195481070 |access-date=2025-03-13 |publisher=Oxford University Press |isbn=978-0-19-880108-5 |last2=Fields |first2=Gary S. |last3=Jaume |first3=David |last4=Viollaz |first4=Mariana |editor2-last=Fields |editor2-first=Gary S. |editor3-last=Jaume |editor3-first=David |editor4-last=Viollaz |editor4-first=Mariana}}</ref> Most industry is a small-scale, aimed at regional markets rather than national operations.<ref name="loc" /> Inadequate credit options and competition from the black market have kept Bolivia's manufacturing sector from developing fully.<ref name="loc" /> Leading manufactured goods in Bolivia include textiles, clothing, non-durable [[consumer good]]s, processed soya, refined metals, and refined petroleum.<ref name="loc" />{{Primary source inline|date=September 2022}}

Processing of food, beverages and tobacco is the biggest sector within the manufacturing industry (39% in 2001<ref name="World Bank" />). This sector occupies a prominent place in the manufacturing industry that is continually growing, both in production and number of businesses and jobs. In 2010 its share in exports was about 14%. Especially the [[soybean]] and its derivatives reached very large export markets in recent years. The largest factories producing [[soybean]]s, [[sunflower seed]]s, cotton and sugar from sugar cane, are mainly situated in [[Santa Cruz de la Sierra|Santa Cruz]], although a large edible oil [[Oil refinery|refineries]] operate in [[Cochabamba]]. All major cities have at least one brewery, one or more soft drink bottling plants, and one or more packaging plants for canned food.{{Citation needed|date=November 2020}}. There has been some growth in publicly owned manufacturing during the presidency of [[Luis Arce]], with Bolivia opening an açai berry processing plant in 2021.<ref>{{Cite web |date=2021-04-05 |title=Bolivia Launches Two State-Owned Manufacturing Plants |url=https://kawsachunnews.com/bolivia-launches-two-state-owned-manufacturing-plants |access-date=2022-06-28 |website=Kawsachun News |language=en-US}}</ref>

The textiles industry was the second largest manufacturing sector after the food industry in the 1970s and was of decreasing importance afterwards, representing progressively diminishing value of total manufacturing. But since the 1990s the textile industry has increased its growth rate. The cotton and wool industry declined at the expense of synthetic fibers. The largest concentration of textile mills are to be found in La Paz, but also in Santa Cruz and Cochabamba and to a lesser extent in [[Oruro, Bolivia|Oruro]].{{Citation needed|date=November 2020}}

Another important industry is the oil refining industry.{{Citation needed|date=November 2020}}

===Services===
The services industry in Bolivia remains undeveloped.<ref name="loc" /> Inhabiting one of the poorest countries in South America, Bolivians have weak purchasing power.<ref name="loc" /> The retail sector suffers from weak demand and competition with a large black market of contraband goods.<ref name="loc" /> U.S. companies such as [[McDonald's]] and [[Domino's]] have pulled out of Bolivia in recent years.<ref name="loc" />
[[File:Edificio de la Bolsa Boliviana de Valores en La Paz, Bolivia.jpg|thumb|Headquarters of the [[Bolivian Stock Exchange]] in [[La Paz]].]]

====Banking and finance====
Banking in Bolivia has long suffered from corruption and weak regulation.<ref name="loc" /> However, a series of reforms initiated by the 1993 Banking Law and subsequent acts are gradually improving Bolivia's banking sector.<ref name="loc" /> Bolivia has a [[central bank]] and nine private banks.<ref name="loc" /> Consolidation occurred following reforms, lowering the number of private banks in Bolivia from 14 in 1995 to nine in 2003.<ref name="loc" /> Foreign participation and investment in Bolivian banks are allowed.<ref name="loc" /> About 90 percent of Bolivian bank deposits are held in U.S. dollars.<ref name="loc" /> The Bolivian government is trying to change this situation by taxing dollarized accounts while exempting boliviano accounts from the tax.<ref name="loc" /> 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.<ref name="loc" /> Most bank lending in 2003 went to manufacturing (24 percent), followed by property services (18 percent) and trade and retail (16 percent).<ref name="loc" /> Bad debt remains at a historically high level.<ref name="loc" /> Further reforms are necessary, including the pending act to introduce a deposit guarantee system.<ref name="loc" /> Bolivia's stock market expanded in 1998 to include corporate bonds, along with the money market and government bond options that had existed previously.<ref name="loc" /> The privatization of Bolivia's social security program has bolstered the stock market.<ref name="loc" />
[[File:The Salar De Uyuni Uyuni Flags Salt Desert Bolivia.jpg|thumb|The [[Salar de Uyuni]] is a major tourist destination in Bolivia.]]

====Tourism====
{{main|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.<ref name="loc" /> Still, Bolivia's tourist industry has grown gradually over the past 15 years.<ref name="loc" /> In 2000 Bolivia attracted 306,000 tourists, compared with 254,000 in 1990.<ref name="loc" /> Tourist revenue peaked at US$179&nbsp;million in 1999.<ref name="loc" /> Tourism in Bolivia declined following the 11 September 2001 attack on the United States, as was the case across North and South America.<ref name="loc" /> Since from 2001 the tourism sector, however, is strongly increasing, in fact in 2018 the number of tourists reached 1.142,000 arrivals.<ref>{{cite web|url=http://data.worldbank.org/indicator/ST.INT.ARVL|title=International tourism, number of arrivals – Data|publisher=World Bank}}</ref>

==Infrastructure==
[[File:Edificio YPFB, La Paz.jpg|thumb|Headquarters of [[YPFB]] in La Paz, Bolivia's largest [[energy company]].]]

===Energy===
Bolivia's energy needs are relatively small but growing consistently.<ref name="loc" /> Bolivia uses oil for the majority of its power needs, followed by natural gas<ref name="loc" /> and hydroelectric power.{{Citation needed|date=November 2020}}

====Oil====
Bolivia has estimated oil reserves of {{convert|441|Moilbbl|m3}}, the fifth largest in South America.<ref name="loc" /> The fields are located in the east and south. The main activities in the refineries is crude oil fractioning, catalytic conversion for high octane gasoline, and refining of heavy fractions to produce lubricants. The final products are vehicle gasoline, liquid [[propane]] and [[butane]], jet fuel, [[diesel fuel|diesel]] oil and lubricants for use in industrial machinery. As domestic oil production is insufficient to meet domestic demand Bolivia is a net importer of oil.<ref name="cia">{{cite web|url=https://www.cia.gov/the-world-factbook/countries/bolivia/ |title=CIA World Fact Book|date=26 July 2022 }}</ref>

Until recently the country's oil industry was fully controlled by the state company [[YPFB]], established in 1936 with the mission to develop, refine and distribute oil resources. After [[privatization]] efforts in the 1990s the transport of natural gas and oil was in private hands during the 1990s while the production and refining of materials was part of risk-sharing contracts between the government and private investors. In 1999 the refineries were also completely privatized. In May 2006 president [[Evo Morales]] re-nationalized reserves, while its exploitation remained in private hands.
[[File:Petrobrasbolivia2006.jpg|thumb|Oil refinery plant in [[Cochabamba]] belonging to Brazilian state-owned company [[Petrobras]].]]

====Natural gas====
{{main | Natural gas in Bolivia }}
The country's natural gas reserves total {{convert|27.6|Tcuft|km3}} according to Bolivian government figures, ranking Bolivia behind only [[Venezuela]] in terms of proven natural gas reserves in South America.<ref name="loc" /> Additionally, Bolivia is self-sufficient in its energy production.<ref name="loc" /> The sector changed significantly when the government allowed [[privatization]] in the mid-1990s.<ref name="loc" /> International companies quickly invested in Bolivian energy sources, particularly in natural gas, and made Bolivia into a player in the world [[energy market]].<ref name="loc" /> The exportation of Bolivian energy resources, while potentially lucrative economically, has been politically hazardous.<ref name="loc" /> President [[Gonzalo Sánchez de Lozada]] ultimately resigned over his plan to export natural gas to the United States and Mexico in 2003.<ref name="loc" />

On 6 June 2005, former president [[Carlos Mesa]] offered his resignation to the Bolivian Congress after [[Bolivian Gas Conflict|months of demonstrations]] by Bolivia's indigenous population calling for renationalizing the [[Natural gas in Bolivia|natural gas]] and oil sectors.<ref name="loc" /> Mesa had increased taxation on foreign companies while still encouraging their investment in Bolivian energy development.<ref name="loc" /> On 1 May 2006, his successor, former president Morales, signed a decree stating that all natural gas reserves were to be nationalized, recovering ownership, possession and control of hydrocarbons. US Exxon Mobil Corporation, Petrobras, Spain's Repsol YPF, UK gas and oil producer BG Group Plc, and France's Total are the main gas companies present in the country.

Bolivia's natural gas exports bring in millions of dollars per day, in royalties, rents and taxes.<ref name="Gustafson 2020 10" /> From 2007 to 2017, what is referred to as the "government take" on gas totaled approximately $22 billion.<ref>{{Cite book |last=Gustafson |first=Bret |title=Bolivia in the Age of Gas |date=18 September 2020 |publisher=Duke University Press |isbn=978-1-4780-1099-9 |pages=10}}</ref>

====Electricity====
{{main | Electricity sector in Bolivia}}
Until 1994 the electricity sector was dominated by the vertically integrated public utility [[ENDE]] (''Empresa Nacional de Electricidad''). In 1994 the electricity sector was privatized and was unbundled into [[electricity generation|generation]], [[electricity transmission|transmission]] and [[electricity distribution|distribution]]. The law aimed to increase efficiency in the sector, promote competition and encourage investment.<ref name="UDAPE">{{cite web |url=http://www.udape.gov.bo/diagnosticos/documentos/Documento%20Sector%20Eléctrico.pdf |title=Sector Eléctrico |publisher=UNDAPE }} {{dead link|date=April 2018 |bot=InternetArchiveBot |fix-attempted=yes }}</ref>

The supply is dominated by thermal generation (60%), while hydropower (40%) has a smaller share in its generation mix compared to other South American countries ([[Latin America and the Caribbean]], or LAC, average hydropower capacity is 51%).<ref name="EIAStatistics">{{cite web|url=http://www.eia.doe.gov/emeu/international/electricitycapacity.html|title=International |publisher=U.S. Energy Information Administration (EIA)}}</ref> The electricity coverage in rural areas is with 30%<ref name="Viceministry">{{cite web|url=http://www.crecerconenergia.net/sem2006eng/pdfs/sesion_1/Jerges%20Mercado.pdf|title=Crecercon Energia|access-date=11 June 2015|url-status=dead|archive-url=https://web.archive.org/web/20120208111431/http://www.crecerconenergia.net/sem2006eng/pdfs/sesion_1/Jerges%20Mercado.pdf|archive-date=8 February 2012}}</ref> among the lowest in Latin America and improving it represents a major challenge in the future and requires the joint efforts from both the public and private sectors. Like in other countries, Bolivia's electricity sector consists of a National Interconnected System (SIN) and off-grid systems (known as the ''Aislado'').

===Transportation===
{{main|Transport in Bolivia}}

===Telecommunications===
{{main|Telecommunications in Bolivia}}

===Water supply and sanitation===
{{main|Water supply and sanitation in Bolivia}}
{{see also |Water resources management in Bolivia | Irrigation in Bolivia}}

==Labor and welfare==
The economic downturn of the late 1990s, coupled with privatization and austerity efforts led by President Mesa, resulted in significant unemployment.<ref name="loc" /> Although the Bolivian government does not keep unemployment statistics, outside experts estimated unemployment to be between 8 and 10 percent of the population, as of 2006.<ref name="loc" /> Underemployment of Bolivia's workforce of nearly 4 million is also widespread.<ref name="loc" /> As a result of the lack of [[informal sector|formal employment]] opportunities, nearly 65 percent of the urban workforce was self-employed in 2002.<ref name="loc" />

Labor unions have a strong history in Bolivia, and many workers in the formal sector belong to unions.<ref name="loc" /> The larger unions, such as the Bolivian Labor Federation and the Trade Union Federation of Bolivian Mine Workers, have been successful in rallying workers to countless strikes and work stoppages.<ref name="loc" /> Nevertheless, working conditions for most Bolivian workers are difficult.<ref name="loc" />

These conditions are even more critical as far as the informal sector is concerned. In fact, Bolivia has been listed in the 2014 [[United States Department of Labor|U.S. Department of Labor]]'s report<ref>{{cite web|url=http://www.dol.gov/ilab/reports/child-labor/list-of-goods/|title=List of Goods Produced by Child Labor or Forced Labor|access-date=11 June 2015|archive-date=10 June 2015|archive-url=https://web.archive.org/web/20150610003351/http://www.dol.gov/ilab/reports/child-labor/list-of-goods/|url-status=dead}}</ref> on [[child labor]] and [[forced labor]] among the 74 countries where instances of such practices have been observed. According to the ''[[List of Goods Produced by Child Labor or Forced Labor]]'' issued under this report, Bolivia resorts to these practices in the [[Agriculture in Bolivia|agricultural sector]] as well as in the [[Mining in Bolivia|mining industry]] until this day. The DOL has also reported that "The [Bolivian] Government's National Plan to Eradicate Child Labor expired in 2010 and has not been updated."<ref>{{cite web|url=http://www.dol.gov/ilab/reports/child-labor/bolivia.htm|title=Findings on the Worst Forms of Child Labor – Bolivia|access-date=11 June 2015|archive-url=https://web.archive.org/web/20150610194622/http://www.dol.gov/ilab/reports/child-labor/bolivia.htm|archive-date=10 June 2015|url-status=dead}}</ref>

==Foreign economic relations==

=== Foreign exchange reserves ===
The amount in reserve currencies and [[gold]] held by Bolivia's Central Bank advanced from 1.085 billion US dollars in 2000, under [[Hugo Banzer Suarez]]'s government, to 15.282 billion US dollars in 2014 under [[Evo Morales]]' government. By 2022, a large part of the currency reserves had been used up, at which point they still stood at just under US$3.8 billion.<ref>{{Cite web |title=Total reserves (includes gold, current US$) - Bolivia |url=https://data.worldbank.org/indicator/FI.RES.TOTL.CD?locations=BO |access-date=2024-02-26 |website=World Bank Open Data}}</ref> In the course of 2023, they fell to less than US$500 million, with the country facing a [[liquidity crisis]].<ref>{{Cite web |date=2023-05-18 |title=Bolivian governor says country faces 'liquidity crisis' |website=Central Banking |url=https://www.centralbanking.com/central-banks/reserves/gold/7958760/bolivian-governor-says-country-faces-liquidity-crisis |access-date=2024-02-26 |language=en}}</ref>

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| style="background:black; color:white; text-align: center; background-color: #9acd32;" colspan="6" |'''{{big|Foreign-exchange reserves 2000–2022 (MM US$)}}''' '''<ref>{{cite web |url=https://www.bcb.gob.bo/webdocs/ReservasInternacionales/graficas/RIN_PAGWEB15ene15.pdf|title=Bolivia: Reservas Internacionales del BCB al 15 de Enero del 2015|author=BCB|date=19 January 2015|access-date=1 January 2017 |archive-url=https://web.archive.org/web/20170102171343/https://www.bcb.gob.bo/webdocs/ReservasInternacionales/graficas/RIN_PAGWEB15ene15.pdf|archive-date=2 January 2017|url-status=live}}</ref>'''
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|-
|  style="background:#f5f5f5; text-align:center;"| Fuente: [[Banco Central de Bolivia]], Gráfica elaborada por: [[Wikipedia]].
|}

===Trade agreements===
Bolivia's trade with neighboring countries is growing, in part because of several regional preferential trade agreements it has negotiated.{{Citation needed|date=November 2020}} Bolivia was a founding member of the [[Andean Group]], a South American organization designed to promote trade among Bolivia, Colombia, Ecuador, Peru, and Venezuela.<ref name="loc" /> Subsequently renamed the [[Andean Community]], the organization has succeeded in increasing intra-South American trade.<ref name="loc" /> Trade among member countries rose from US$3.6&nbsp;billion in 1991 to US$10.3&nbsp;billion in 2003.<ref name="loc" /> Bolivia also belongs to the Common Market of the South (Mercado Común del Sur—[[Mercosur]]).<ref name="loc" /> Bolivia became an associate member in March 1997 to open investment opportunities with the founding Mercosur countries (Argentina, Brazil, Paraguay, and Uruguay), as well as other Mercosur associate members (Chile, Colombia, Ecuador, Peru, and Venezuela).<ref name="loc" /> The agreement provides for the gradual creation of a free trade area covering at least 80% of the trade between the parties over a 10-year period, though economic crises in the region have derailed progress at integration.{{Citation needed|date=November 2020}} The U.S. [[Andean Trade Preference and Drug Enforcement Act]] (ATPDEA) allows (allowed?) numerous Bolivian products to enter the United States free of duty on a unilateral basis, including [[alpaca]] and [[llama]] products and, subject to a quota, cotton textiles.{{Citation needed|date=November 2020}} Bolivia conducted more than US$1&nbsp;billion in trade with Mercosur countries in 2003.<ref name="loc" /> As a result of negotiations initiated in 1999 on a possible [[South American Free Trade Area]] (SAFTA), Mercosur and the Andean Community of Nations announced in December 2004 that they would merge, creating a [[Union of South American Nations]] modeled after the European Union.<ref name="loc" />

===Imports and exports===
Bolivian tariffs are low; however, manufacturers complain that the tax-rebate program that allows some companies to claim refunds of import taxes on capital equipment is inefficient, with many companies now owed millions of dollars by the Bolivian Government, which can take years to recover.
<!-- The OEC ref covers everything from here to "US$7.02 billion". -->

Bolivian imports of goods were valued at about US$6.52 billion in 2020, while service imports were valued at about US$2.55 billion in 2019.<ref name="The Observatory of Economic Complexity-2023">{{Cite web |date=January 13, 2023 |title=Bolivia (BOL) Exports, Imports, and Trade Partners {{!}} OEC |url=https://oec.world/en/profile/country/bol/ |url-status=live |archive-url=https://web.archive.org/web/20230103070604/https://oec.world/en/profile/country/bol/ |archive-date=January 3, 2023 |access-date=January 13, 2023 |website=[[The Observatory of Economic Complexity]]}}</ref>

Bolivia enjoyed an estimated $500 million goods trade surplus in 2020. Leading sources of Bolivian imports include China, Brazil, Chile, Peru, and Argentina, with its top imports refined petroleum, cars, pesticides, delivery trucks, and raw iron bars.<ref name="The Observatory of Economic Complexity-2023" />

Bolivian exports of goods and services in 2020 stood at US$7.02 billion<ref name="The Observatory of Economic Complexity-2023" /> compared with US$1.9 billion in 2003.<ref name="loc" />

Increased production of hydrocarbons, especially natural gas, led Bolivia's trade upturn in 2004.<ref name="loc" /> A 20-year supply contract with Brazil for natural gas, ending in 2019, the necessary capital to increase production.<ref name="loc" /> In 2004 export revenues for natural gas topped US$619 million.<ref name="loc" /> Bolivia also exported significant quantities of petroleum.<ref name="loc" /> Beyond hydrocarbons, other significant exports included zinc, soya, iron ore, and tin.<ref name="loc" /> In 2001 Brazil overtook the United States as Bolivia's primary export outlet.<ref name="loc" /> Switzerland, Venezuela, and Colombia are also important export partners.<ref name="loc" /> Bolivia has actively sought to foster economic connections in South America after long relying on the United States as its primary trade partner.<ref name="loc" />

The United States remains one of Bolivia's largest trading partners; however, it faded greatly on Brazil benefit in 2012. In 2002, the United States exported $283 million of merchandise to Bolivia and imported $162 million. Bolivia's major exports to the United States are [[tin]], gold, jewelry, and wood products. Its major imports from the United States are [[computers]], [[vehicles]], wheat, and machinery. A Bilateral Investment Treaty between the United States and Bolivia came into effect in 2001,<ref>{{Cite journal |last1=Feinschreiber |first1=Robert |last2=Kent |first2=Margaret |date=October 2010 |title=What the Tax Practitioner Should Know About the U.S.-Bolivia Bilateral Investment Treaty |journal=Corporate Business Taxation Monthly |volume=12 |issue=1 |pages=37–40 |via=ProQuest}}</ref> however the Treaty was terminated by the government of Bolivia in 2012.<ref>{{Cite web|url=https://www.govinfo.gov/content/pkg/FR-2012-05-23/pdf/2012-12494.pdf|title=Federal Register Vol. 77 No. 100 – Wednesday, May 2012 – Notices}}</ref>

By 2004 Bolivia had become the market leader in the export of [[brazil nut]]s,<ref>{{cite web|url=https://www.nytimes.com/2004/08/26/world/maraba-journal-brazil-s-problem-in-a-nutshell-bolivia-grows-nuts-best.html|title=Marabá Journal; Brazil's Problem in a Nutshell: Bolivia Grows Nuts Best|first=Larry|last=Rohter|date=26 August 2004|work=The New York Times}}</ref> with thousands of local people involved in collecting the pods in Bolivian Amazonia.<ref>{{cite news|url=http://news.bbc.co.uk/1/hi/business/2807293.stm|title=Business – Nut harvest sustains Bolivian Amazon|date=3 March 2003 |access-date=11 June 2015}}</ref>

===Balance of trade===
Bolivia had an estimated trade surplus of more than US$1.6&nbsp;billion in 2011.{{Citation needed|date=November 2020}} This figure represents a marked change in Bolivia's economic balance sheet.<ref name="loc" /> Bolivia reached a peak [[trade deficit]] of US$888&nbsp;million in 1998 before increased hydrocarbon exports radically altered the situation.<ref name="loc" />

Bolivia had a large negative [[balance of payments]] for 2002⎯US$317&nbsp;million.<ref name="loc" /> However, this situation has been remedied by the vast increase in export revenue.<ref name="loc" /> Estimates for the balance of payments for 2004 show a record surplus of US$126&nbsp;million.<ref name="loc" /> Bolivia's external debt totaled an estimated US$5.7&nbsp;billion in 2004.<ref name="loc" /> The [[International Monetary Fund]] has assisted Bolivia in paying down this debt.<ref name="loc" /> In 1995 the United States, among other countries, reduced Bolivia's debt by two-thirds.<ref name="loc" />

===Foreign investment===
[[Foreign direct investment|Foreign investment]] in Bolivia was buoyed in 1995 by privatization.<ref name="loc" /> Investment in mining and natural gas extraction increased, as did investment in the banking sector.<ref name="loc" /> However, the economic decline of the late 1990s, along with political unrest, caused foreign investors to pull out of Bolivia once again.<ref name="loc" /> In 2000 foreign investors contributed US$736&nbsp;million to the Bolivian economy.<ref name="loc" /> In 2002 this total fell to US$676&nbsp;million.<ref name="loc" />

The Government of Bolivia remains heavily dependent on foreign assistance to finance development projects. At the end of 2002, the government owed $4.5&nbsp;billion to its foreign creditors, with $1.6&nbsp;billion of this amount owed to other governments and most of the balance owed to multilateral development banks. Most payments to other governments have been rescheduled on several occasions since 1987 through the [[Paris Club]] mechanism. External creditors have been willing to do this because the Bolivian Government has generally achieved the monetary targets set by [[International Monetary Fund]] programs since 1987, though [[economic crisis|economic problem]]s in recent years have undercut Bolivia's normally good track record. Rescheduling agreements granted by the Paris Club have allowed the individual creditor countries to apply very soft terms to the rescheduled debt. As a result, some countries have forgiven substantial amounts of Bolivia's bilateral debt. The U.S. Government reached an agreement at the Paris Club meeting in December 1995 that reduced by 67% Bolivia's existing debt stock. The Bolivian Government continues to pay its debts to the multilateral development banks on time. Bolivia is a beneficiary of the [[Heavily Indebted Poor Countries]] (HIPC) and Enhanced HIPC debt relief programs, which by agreement restricts Bolivia's access to new [[soft loan]]s. Bolivia was one of three countries in the Western hemisphere selected for eligibility for the [[Millennium Challenge Account]] and is participating as an observer in [[free trade agreement]] negotiations. Bolivia enjoys some financial assistance programs run by the [[World Bank]]<ref>[http://web.worldbank.org/WBSITE/EXTERNAL/COUNTRIES/LACEXT/BOLIVIAEXTN/0,,menuPK:322289~pagePK:141132~piPK:141107~theSitePK:322279,00.html Bolivia Country Brief] on the World Bank website</ref> and [[Microenterprise]] Development programs provided by [[Five Talents International]].<ref>[http://www.fivetalents.org/content.asp?pl=406&contentid=583 Releasing the Talents of the Poor in Bolivia via Microenterprise Development] {{webarchive|url=https://web.archive.org/web/20100212122539/http://www.fivetalents.org/content.asp?pl=406&contentid=583 |date=12 February 2010 }}</ref>

====Mutun iron ore project====
In 2007, India's third-largest steel manufacturer, [[Jindal Steel and Power Limited]], signed a contract with the Bolivian government to exploit the [[El Mutun|Mutun]] iron ore deposit, considered to be one of the largest in the world. According to the contract, Jindal would invest US$1.5&nbsp;billion initially and an additional US$2.5&nbsp;billion over the next eight years. This is the single largest investment by an Indian firm in Latin America.<ref>{{cite news | url=http://www.theaustralian.news.com.au/story/0,25197,22858026-5005200,00.html | work=The Australian | title=India's Bolivian ore | date=3 December 2007 | access-date=3 December 2007 | archive-url=https://web.archive.org/web/20071205011554/http://www.theaustralian.news.com.au/story/0,25197,22858026-5005200,00.html | archive-date=5 December 2007 | url-status=dead }}</ref> Jindal Steel will set up an integrated 1.7 MTPA steel plant, a 6 MTPA sponge iron plant, a 10 MTPA iron ore pellet plant and a 450 MW power plant.<ref name="Jin">{{cite web|url=http://www.indiainfoline.com/Markets/News/Jindal-Steel-and-Power-expects-10-12-percent-growth-in-Indian-steel-consumption/3936250780|title=Jindal Steel and Power expects 10–12% growth in Indian steel consumption|access-date=11 June 2015|archive-url=https://web.archive.org/web/20130509132547/http://www.indiainfoline.com/Markets/News/Jindal-Steel-and-Power-expects-10-12-percent-growth-in-Indian-steel-consumption/3936250780|archive-date=9 May 2013|url-status=dead}}</ref> By September 2011, Jindal had obtained clearance for the project from the EIA and had hired an engineering consultant for [[Front-end loading|FEED work]].<ref name="Jin"/> The project is expected to create 6,000 jobs directly and another 15,000 indirectly.<ref>[http://afp.google.com/article/ALeqM5gVpRQ9-JLWmbpxT08MJw-E5yxQBw AFP: Bolivia OKs Indian firm to mine vast iron deposit<!-- Bot generated title -->] {{webarchive|url=https://web.archive.org/web/20071208204706/http://afp.google.com/article/ALeqM5gVpRQ9-JLWmbpxT08MJw-E5yxQBw |date=8 December 2007 }}</ref>

As of June 2011, Jindal had invested only US$20&nbsp;million on the project due to considerable delay by Bolivian authorities in issuing land for the project and due to inability of the Bolivian government to commit 8 million cubic meters of natural gas per day for the power plant and ore smelting process.<ref>{{cite web|url=http://www.hidrocarburosbolivia.com/bolivia-mainmenu-117/analisis-y-opinion/44327-la-espera-del-mutun-editorial.html|title=La espera del Mutún (Editorial)|work=Hidrocarburosbolivia.com|access-date=11 June 2015|archive-url=https://web.archive.org/web/20131027210505/http://www.hidrocarburosbolivia.com/bolivia-mainmenu-117/analisis-y-opinion/44327-la-espera-del-mutun-editorial.html|archive-date=27 October 2013|url-status=usurped}}</ref> In 2012 Jindal exited Bolivia, prompting Bolivia to seize the bond. In 2014, international arbitration awarded Jindal $22.5 Million due to Bolivia's seizure of the bond.<ref>{{cite web| url = https://www.wsj.com/articles/bolivia-to-appeal-ruling-favoring-indias-jindal-in-el-mutun-dispute-1409074729| title = Bolivia to Appeal Ruling Favoring India's Jindal in El Mutún Dispute - WSJ}}</ref>

==See also==
{{div col|colwidth=35em}}
*[[Agriculture in Bolivia]]
*[[Bolivian boliviano]]
*[[Electricity sector in Bolivia]]
*[[Health in Bolivia]]
*[[Mining in Bolivia]]
*[[Natural gas in Bolivia]]
*[[Telecommunications in Bolivia]]
*[[Tourism in Bolivia]]
*[[Transport in Bolivia]]
*[[Water supply and sanitation in Bolivia]]
* [[List of Latin American and Caribbean countries by GDP growth]]
* [[List of Latin American and Caribbean countries by GDP (nominal)]]
* [[List of Latin American and Caribbean countries by GDP (PPP)]]
{{div col end}}

==References==
{{Reflist|refs=
}}
* {{CIA World Factbook}}
*{{StateDept}}

==Notes==
{{reflist|group=note}}

==External links==
{{Commons category|Economy of Bolivia}}
* {{in lang|en}} [https://archive.today/20140210053126/http://www.bolivianland.net/ing/detalledestacado.php?idaviso=2 Information about agriculture and industries in Bolivia.]
* {{in lang|es}} [http://www.bcb.gob.bo Banco Central de Bolivia] {{Webarchive|url=https://web.archive.org/web/20220401030538/http://www.bcb.gob.bo/ |date=1 April 2022 }}
* {{in lang|es}} [https://web.archive.org/web/20200423113601/https://www.economiayfinanzas.gob.bo/ Ministerio de Economía y Finanzas Públicas]
* {{in lang|es}} [https://web.archive.org/web/20110924073930/http://www.ine.gob.bo/ Instituto Nacional de Estadística]
*Tariffs applied by Bolivia as provided by ITC's [https://www.macmap.org/ ITC Market Access Map], an online database of customs tariffs and market requirements.

{{South America in_topic|Economy of}}

{{SACN}}
{{World Trade Organization}}
{{Bolivia topics}}

[[Category:Economy of Bolivia| ]]
[[Category:World Trade Organization member economies|Bolivia]]