MACRO INDICATORS Bolivia's economy, South America's poorest, is expected to grow by 4.5 percent this year, United Nation’s Economic Commission for Latin America and the Caribbean (ECLAC) estimates. That compares with 3.5 percent last year.
Inflation is expected to reach 4.1 percent this year and 4.5 percent next year, the IMF predicts. That compares with 4.3 percent registered last year.
POLITICAL DEVELOPMENTS
President Evo Morales, who assumed office in January 2006 and was re-elected in December 2009, has followed economic policies characterized by hostility towards local and foreign private investment and the United States, combined with chaotic management and constant fighting with political opponents. U.S.-Bolivian relations have gradually been worsening and after the U.S. ambasador was expelled, Bolivia lost its duty-free access to the U.S. market for the first time in 18 years.
ECONOMIC INDICATORS
Latin Business Index Bolivia is the fourth-worst place to do business in Latin America, according to the Latin Business Index 2009. With a score of 10.801 (with Chile at 17..055 best), Bolivia ended in 16th place out of 19 countries.
FDI Foreign direct investment reached $512 million in 2008, a 40 percent decline from 2007, according to estimates from ECLAC.
Trade Exports reached $5.5 billion in 2009, ECLAC estimates. That's an decrease of 26.2 percent from 2008. Imports fell an estimated 10.8 percent to $5.1 billion. Exports accounted for 35.4 percent of Bolivia's GDP in 2007, according to the World Bank.
Globalization Bolivia is the 11th-most globalized country in Latin America, according to the Latin Globalization Index 2009. It is the second-least globalized country in the Andean Community. The index of 18 countries looks at five factors that determine global links: exports of goods and services as a percent of GDP, imports of goods and services as a percent of GDP, foreign direct investment as a percent of GDP, tourism receipts as a percent of GDP, remittances as a percent of GDP and Internet penetration.
Competitiveness Bolivia received a score of 3.42 and a rank of 120 on a global survey of 134 countries, according to the 2008-09 Global Competitiveness Index from the World Economic Forum. That means Bolivia's economy is the third-least competitive in Latin America. Only Paraguay and Nicaragua are worse.
Capital Access It is difficult for entrepreneurs to get access to capital in Bolivia. According to the 2008 Capital Access Index from the Milken Institute, Bolivia ends up in 87th place of 122 countries worldwide. That means Bolivia ranks ahead of Venezuela and Paraguay, but behind Ecuador.
Economic Freedom Heritage Foundation says Bolivia's economy is 55 percent free and thus "Mostly Unfree" in its 2008 survey on economic freedom (with 100 percent being best). That means Bolivia has the fourth-most repressed economy in Latin America.
TECHNOLOGY INDICATORS
Bolivia has Latin America's fourth-lowest technology level, according to the Latin Technology Index 2008, which measuresthe technology level of 20 Latin American countries by looking at the penetration rates of Internet, broadband Internet, personal computers (PCs), wireless subscribers and fixed telephone lines.
Wireless phone subscribers (2007): 3.3 million Wireless phone penetration (2007): 34.17% Fixed telehophone lines (2007): 678,200 Fixed telephone penetration (2007): 6.82% Internet users (2007): 198,400 Internet penetration (2007): 2.08% PCs in use (2007): 390,000 PC penetration (2007): 3.5%
Sources: International Telecommunications Union (ITU), Computer Industry Almanac (PC users), IMF (population data) and Latin Business Chronicle.
SOCIO-POLITICAL INDICATORS
Corruption Bolivia scores 3.0 on the 2008 corruption survey from Transparency International, where 10 is best. That makes it the fifth-most corrupt country in South America and the second-worst within the Andean Community (only Ecuador is worse).
Crime and Security Bolivia scores 4 points the 2009 Latin Security Index developed by FTI Consulting Ibero America for Latin Business Chronicle. The index measures security for visiting foreign business executives and companies. That means Bolivia is safer than countries like Brazil, Colombia and Venezuela, but less so than Peru.
Political Freedom Bolivia is classified as "Partly Free" by Freedom House as a result of getting 3 in political rights and civil liberties (1 is best and 7 is worst).
Poverty and unemployment Bolivia is the second-poorest economy in South America (after Paraguay) and the 3th-poorest in Latin America in terms of GDP per capita. 64 percent of the population live below the poverty line, according to 2004 data from the CIA. Unemployment stood at 8.5 percent in 2004 (the latest available figure), according to the United Nations Economic Commission for Latin America and the Caribbean (ECLAC).
Education and Health Bolivia receives a score of 0.695 and ranks 117th out of 159 countries on the 2007/2008 Human Development index from the United Nations.
Economic Freedom Falling in Bolivarian Andes