Economy of Bolivia

Economy of Bolivia


Bolivia’s economy is mainly based on the extraction and export of its mainly mining and gas resources. The prospect of development since the fifties shows that its per capitaincome has had a very slow growth since then. The GDP has had an average growth of 3% a year , while the rate of population growth was 2.6 % per annum, which shows that the per capita income hasremained about the same and its population comes Similar economic found in the fifties conditions without occurred almost no increase in productivity. A comparative level, within the Americas, only Argentinaand Peru, have had a career similar.

In colonial times, Bolivia was a major world producer of gold and silver, with large reserves. In addition, the mid-twentieth century in the Republican era,Bolivia is constituted one of the largest producers of tin, becoming the leading producer of this metal. However, the Bolivian economy relied heavily on mineral monoextracción with low diversification,which exposed her to great risks from fluctuations in international prices. So , in the eighties the Bolivian economy went bankrupt by the fall in international prices of tin , bringing in massivelayoffs result from multiple companies went out of business . Today, the Bolivian economy remains heavily dependent on primary production; although there has been a slight diversification of mineralproduction as zinc or tin, natural gas and soy.
Bolivia has the second largest natural gas reserves in South America but not reach 1% of total world reserves. These reserves are considered today a source ofa national debate about its future use.

The agribusiness sector has had a major impact on the Bolivian economy due to the automation and optimization of agricultural products such as: Livestockproduction of soybeans, sugar production, rice production, etc.

Tourism is a growing industry because Bolivia is a country of stark contrasts located between the high peaks of the Andes and the Amazon...