Bolivia Economic Forecast
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Of all countries in Latin America, Bolivia is rated as one of the poorest when it comes to per capita GDP. During the 1980s, the country experienced a horrific economic crisis, help stimulate economic growth and reduce poverty levels. However, from 2003 to 2005, the country had further challenges with political instability and racial tensions, which ultimately stopped exportation of newly found natural gas national reserves.
Of all countries in Latin America, Bolivia is rated as one of the poorest when it comes to per capita GDP. During the 1980s, the country experienced a horrific economic crisis, help stimulate economic growth and reduce poverty levels. However, from 2003 to 2005, the country had further challenges with political instability and racial tensions, which ultimately stopped exportation of newly found natural gas national reserves. Soon, a new oil law was imposed for higher royalties and the requirement of foreign firms doing business under risky contracts to relinquish all production to the energy company of Bolivia. Then by 2008, Bolivia began to see greater revenues for exportation of oil and mining, which then brought surplus for the national current account balance to 9.4% of GDP. In addition, higher taxes created a financial surplus, ending several years of significant deficit. Even so, inflation rates have stayed low, the GDP is still one of the cheapest on the continent, suspension of imports and exports with the United States, and a lower number of Foreign Direct Investments for hydrocarbon, and mining sectors have continued to plague Bolivia’s economy.
Bolivia GDP Forecast
For the year 2009, Bolivia’s Growth Domestic Product for constant prices and national currency was at 3.3%, down from 6.15% in 2008. This current information ranks the country as number 52 for the world. Forecasters put numbers for ending year 2010 at 3.99% and by the end of year 2015, they believe the Growth Domestic Product for constant prices and national currency will be up slightly to 4.033%. With that, the country of Bolivia would rank number 102 in the world. Then for the Growth Domestic Product per Capita or PPP, the year 2009 ended at $4,454.99 in US Dollars, putting the country in position 119 for world rankings, which brought the numbers up somewhat from the previous year at $4,345.95. The forecast for the end of 2010 is at $4,575.54, which would push Bolivia up 2.71% over year ending 2009.
In 2006, the majority of workers in Bolivia were involved with agriculture, followed by the industry and services sectors. The number of people working at the end of 2008 was estimated at 4,457 million and by the end of 2009 4,536 million. The latest reporting information for Bolivia’s unemployment Rate was at 8.5%, which was 1% higher than the previous year. Unemployment in Bolivia is widespread, meaning it affects both urban and city regions of the city.
Bolivia Inflation Rate Forecast
In 2008, the Bolivia inflation rate was at 154.69 with forecasters stating the country would be 0.30% more than it was by 2009. According to the latest reports, Bolivia’s inflation rate was at 155.155 for 2009 according to the index base year of 2000 = 100. With these numbers, this country is ranked in the number 89 position for world rankings. By the end of 2010, forecasters speculate inflation will be somewhat higher at 161.36 and by the end of 2015, even higher with numbers reaching 191.648. At that time, Bolivia would be listed as number 88 in world rankings.
Bolivia Current Account Balance Forecast
The most recent reports show that Bolivia Current Account Balance is at number 42 for world rankings for the year 2009 ending at $0.62 billion in United States dollars. Just one year prior, numbers were higher at $2.02 billion and for the year ending 2010, forecasters estimate the Current Account Balance would be at $0.49 billion, US dollars. If forecasters prove to be accurate, this would put Bolivia in position 47 for world rankings at the close of 2015.