Bolivia Industry Sectors

 Bolivia has numerous industry sectors, with oil and natural gas playing a major role in the economy. Other sectors in Bolivia include mining, food and beverages, agriculture, tobacco, clothing and handicrafts. The agriculture sector consists of products like soybeans, coffee, coca, cotton, corn, sugarcane, rice and potatoes.[br]

 Bolivia has numerous industry sectors, with oil and natural gas playing a major role in the economy. Other sectors in Bolivia include mining, food and beverages, agriculture, tobacco, clothing and handicrafts. The agriculture sector consists of products like soybeans, coffee, coca, cotton, corn, sugarcane, rice and potatoes.[br]

Bolivia Industries: Mining

Bolivia’s mining industry gave a major boost to the Bolivian economy in 2009. The mining industry grew 13% in 2009 and the growth was attributed to the increase in production by various state run companies. The mining industry contributed 4% to the GDP and is expected to consolidate the economic recovery in 2010. During the recession, the prices of minerals in the international markets fell to record lows. However, with the rise in prices of zinc, tin and nickel in 2009, the Bolivian mining industry performed beyond expectations. Bolivia’s economy grew by 3.11% in H1 2009 and by December 2009, the figure rose to 3.78%. The mining industry was a major force behind this recovery, aided by the rising prices of minerals. With the prices of zinc and tin expected to rise further, the Bolivian mining industry is expected to contribute even further.

 

Bolivian Industries: Oil and Gas

A report from Business Monitor International (BMI) has forecasted that Bolivia will account for 0.71% of Latin America’s regional oil demand by 2014, while providing 0.58% of the supplies. Between 2009 and 2019, crude oil volumes will peak to 65,000 b/d. Oil consumption in the ten-year period will increase by 26.8%. Gas production will rise from 14.9 bcm in 2009 to 20.0 bcm in 2013-2014, before slipping back to 18.0bcm by 2019.[br]

 

Bolivian Industries: Textiles

The Bolivian textile industry has enjoyed stable growth in the past, with exports earnings more than $30 billion. However, because of the global financial crisis, the Bolivian textile industry had also gone through a period of crisis. Coupled with the imperatives to seek new markets and the country’s long running problems in combating narcotics, textile exports fell by 7.7% YOY in H1 2009. However, due to free trade agreements with the US and other Latin American countries, Bolivian textile manufacturers have started exploring nearby markets such as Peru, Brazil and Argentina. The Bolivian and Brazilian governments had signed an agreement in August 2009 to export $21 million worth of textiles to Brazil, with zero tariff during a 12-month period.