Economic overview Bolivia, in 36 editions.

The Bolivian economy steadily deteriorated between 1980 and 1985 as La Paz financed growing budget deficits by expanding the money supply and inflation spiraled--peaking at 11,700%. An austere orthodox economic program adopted by newly elected President Paz Estenssoro in 1985, however, succeeded in reducing inflation to between 10% and 20% annually during 1987 and 1989, since 1987, eventually restarting economic growth. President Paz Zamora has pledged to retain retained the economic policies of the previous government in order to keep government, keeping inflation down and continue continuing the moderate growth begun under his predecessor. Nevertheless, Bolivia continues to be one of the poorest countries in Latin America, and it remains vulnerable to price fluctuations for its limited exports--mainly minerals exports--agricultural products, minerals, and natural gas. Moreover, for many farmers, who constitute half of the country's work force, the main cash crop is coca, which is sold for cocaine processing.

The Bolivian economy steadily deteriorated between 1980 and 1985 as La Paz
financed growing budget deficits by expanding the money supply supply, and
inflation spiraled--peaking spiraled - peaking at 11,700%. An austere orthodox economic
program adopted by newly elected then President Paz Estenssoro in 1985, however, succeeded
in reducing inflation to between 10% and 20% annually since 1987, eventually
restarting economic growth. Since August 1989, President Paz Zamora has
retained the economic policies of the previous government, keeping inflation
down and continuing the moderate growth begun under his predecessor. growth. Nevertheless, Bolivia continues to be
one of the poorest countries in Latin America, with widespread poverty and
unemployment, and it remains vulnerable to price fluctuations for its
limited exports--agricultural exports - agricultural products, minerals, and natural gas.
Moreover, for many farmers, who constitute half of the country's work force,
the main cash crop is coca, which is sold for cocaine processing.

With its long history of semifeudal social controls,
dependence on
volatile prices for its mineral exports, and bouts of hyperinflation,
hyperinflation, Bolivia has remained one of the poorest and least
developed Latin
American countries. However, Bolivia has experienced generally
generally improving economic conditions since the PAZ Estenssoro administration
administration (1985-89) introduced market-oriented policies which
reduced inflation
from 11,700% in 1985 to about 20% in 1988. PAZ
Estenssoro was followed
as President by Jaime PAZ Zamora (1989-93) who
continued the
free-market policies of his predecessor, despite
opposition from his
own party and from Bolivia's once powerful labor
movement. By
maintaining fiscal discipline, PAZ Zamora helped reduce
inflation to
9.3% in 1993, while GDP grew by an annual average of
3.25% during his
tenure. Inaugurated in August 1993, President SANCHEZ
DE LOZADA has
vowed to advance government the market-oriented economic reforms he helped
helped launch as PAZ Estenssoro's Planning Minister. A major planning minister. His successes so
far have included an inflation rate that continues to decrease - the
1994 rate of 8.5% was the lowest in ten years - the signing of a free
trade agreement with Mexico, and progress on his unique privatization
plan. The main privatization bill was passed by the Bolivian
legislature in late March 1994. Related laws - one that establishes
SIRESE, the regulatory agency that will oversee the privatizations,
and another that outlines the rules for privatization in the
electricity sector - were approved later in the year.

With its long history of semifeudal social controls,
controls, dependence on volatile prices for its mineral exports, and
bouts of
hyperinflation, Bolivia has remained one of the poorest and least
least developed Latin American countries. However, Bolivia has experienced
experienced generally improving economic conditions since the PAZ Estenssoro
Estenssoro administration (1985-89) introduced market-oriented
policies which
reduced inflation from 11,700% in 1985 to about 20%
in 1988. PAZ
Estenssoro was followed as President president by Jaime PAZ
Zamora (1989-93) who
continued the free-market policies of his
predecessor, despite
opposition from his own party and from
Bolivia's once powerful labor
movement. By maintaining fiscal
discipline, PAZ Zamora helped reduce
inflation to 9.3% in 1993,
while GDP grew by an annual average of
3.25% during his tenure.
Inaugurated in August 1993, President SANCHEZ
DE LOZADA has vowed to
advance the market-oriented economic reforms he
helped launch as PAZ
Estenssoro's planning minister. His successes so
far have included an inflation rate that continues to decrease - the
1994 rate of 8.5% was the lowest in ten years - the signing of a free
trade agreement with Mexico, Mexico and progress on
his unique privatization
plan. The main privatization bill was
passed by the Bolivian
legislature in late March 1994. Related laws - one Since that establishes
SIRESE, time, the regulatory agency that will oversee administration has privatized the privatizations, electric power
and another that outlines generation sector, the rules for privatization in state airline, the state telephone company,
electricity sector - were approved later in and the year. national railroad. The state mining and petroleum companies
are expected to be privatized in 1996.

With its long history of semifeudal social
controls, dependence on volatile prices for its mineral exports, and
bouts of hyperinflation, Bolivia has remained one of the poorest and
least developed Latin American countries. However, Bolivia has
experienced generally improving economic conditions since the PAZ
Estenssoro administration (1985-89) introduced market-oriented
policies which reduced inflation from 11,700% in 1985 to about 20%
in
1988. PAZ Estenssoro was followed as president by Jaime PAZ
Zamora
(1989-93) who continued the free-market policies of his
predecessor,
despite opposition from his own party and from
Bolivia's once powerful
labor movement. By maintaining fiscal
discipline, PAZ Zamora helped
reduce inflation to 9.3% in 1993,
while GDP grew by an annual average
of 3.25% during his tenure.
Inaugurated in August 1993, President
SANCHEZ DE LOZADA has vowed to
advance the market-oriented economic
reforms he helped launch as PAZ
Estenssoro's planning minister. His successes so far have included
successes include the signing of a free trade agreement with Mexico and progress on
his unique privatization plan. The main privatization bill was
passed by the Bolivian legislature in late March 1994. Since that
time, and the administration has privatized Southern Cone Common Market (Mercosur) as well as the electric power
generation sector, privatization of the state airline, the state telephone phone company, railroad, electric
power company, and the national railroad. The state mining oil company. Furthermore, SANCHEZ DE LOZADA
sponsored legislation creating private social security accounts for
all adult Bolivians and petroleum companies capitalized these new accounts with the
are expected to be privatized state's remaining 50% share in 1996. the privatized companies.

With its long history of semifeudal social
controls,
dependence on volatile prices for its mineral exports, and
bouts of
hyperinflation, Bolivia has remained one of the poorest and
least
developed Latin American countries. However, Bolivia has
experienced
generally improving economic conditions since the PAZ
Estenssoro
administration (1985-89) introduced market-oriented
policies which
reduced inflation from 11,700% in 1985 to about 20% in
1988. PAZ
Estenssoro was followed as president by Jaime PAZ Zamora
(1989-93) who
continued the free-market policies of his predecessor,
despite
opposition from his own party and from Bolivia's once powerful
labor
movement. By maintaining fiscal discipline, PAZ Zamora helped
reduce
inflation to 9.3% in 1993, while GDP grew by an annual average
of
3.25% during his tenure. Inaugurated in August 1993, President
SANCHEZ DE LOZADA has (1993-1997) vowed
to advance the market-oriented economic
reforms he helped launch as
PAZ Estenssoro's planning minister. His
successes include included the signing
of a free trade agreement with Mexico
and the Southern Cone Common
Market (Mercosur) as well as the
privatization of the state airline,
phone company, railroad, electric
power company, and oil company.
Furthermore, SANCHEZ DE LOZADA
sponsored legislation creating private
social security accounts for
all adult Bolivians and capitalized these
new accounts with the
state's remaining 50% share in the privatized
companies. Hugo BANZER Suarez took office in August 1997 and has
proclaimed his commitment to the economic reforms of the previous
administration.

With its long history of semifeudal social controls,
controls, dependence on volatile prices for its mineral exports, and bouts of
hyperinflation, Bolivia has remained one of the poorest and least
developed Latin American countries. However, Bolivia has experienced
generally improving economic conditions since the PAZ Estenssoro
administration (1985-89) introduced market-oriented policies which
reduced inflation from 11,700% in 1985 to about 20% in 1988. PAZ
Estenssoro was followed as president by Jaime PAZ Zamora (1989-93) who
who continued the free-market policies of his predecessor, despite
opposition from his own party and from Bolivia's once powerful labor
movement. By maintaining fiscal discipline, PAZ Zamora helped reduce
inflation to 9.3% in 1993, while GDP grew by an annual average of
3.25% during his tenure. President SANCHEZ DE LOZADA (1993-1997) vowed
to advance
the market-oriented economic reforms he helped launch as
PAZ
Estenssoro's planning minister. His successes included the signing
of a free trade agreement with Mexico and the Southern Cone Common
Market (Mercosur) as well as the privatization of the state airline,
phone telephone company, railroad, electric power company, and oil company.
Furthermore, SANCHEZ DE LOZADA sponsored legislation creating private
social security accounts for all adult Bolivians and capitalized these
new accounts with the state's remaining 50% share in the privatized
companies. company. Hugo BANZER Suarez took office in August 1997 and has
proclaimed his commitment tried to further improve the economic reforms of
country's investment climate with an anticorruption campaign. With
the previous scheduled completion of a $2 billion natural gas pipeline to
administration. Brazil in 1999, Bolivia hopes to become an energy hub in the region.

With its Bolivia, long history of semifeudal social
controls, dependence on mineral exports, and bouts of
hyperinflation, Bolivia has remained one of the poorest and least
developed Latin American countries. However, Bolivia countries, has experienced
generally improving economic conditions since the PAZ Estenssoro
administration (1985-89) introduced market-oriented policies which
reduced inflation from 11,700% in 1985 to about 20% in 1988. PAZ
Estenssoro was followed as president by Jaime PAZ Zamora (1989-93)
who continued made considerable progress toward the free-market policies development of his predecessor, despite
opposition from his own party and from Bolivia's once powerful labor
movement. a market-oriented economy. Successes under President SANCHEZ DE LOZADA (1993-1997) vowed to advance
the market-oriented economic reforms he helped launch as PAZ
Estenssoro's planning minister. His successes included the signing
of a free trade agreement with Mexico and the Southern Cone Common
Market (Mercosur) as well as the privatization of the state airline,
telephone company, railroad, electric power company, and oil
company. His successor, Hugo BANZER Suarez has tried to further improve the
country's investment climate with an anticorruption campaign. With
the scheduled completion of a $2 billion natural gas pipeline to
Brazil Growth slowed in 1999, Bolivia hopes to become an energy hub in part due to tight government budget policies, which limited needed appropriations for anti-poverty programs, and the region. fallout from the Asian financial crisis. Growth should rebound to perhaps 4% in 2000 given reasonably favorable world commodity prices.

Bolivia, long one of the poorest and least developed Latin American countries, has made considerable progress toward the development of a market-oriented economy. Successes under President SANCHEZ DE LOZADA (1993-1997) (1993-97) included the signing of a free trade agreement with Mexico and joining the Southern Cone Common Market (Mercosur) (Mercosur), as well as the privatization of the state airline, telephone company, railroad, electric power company, and oil company. His successor, Hugo BANZER Suarez has tried to further improve the country's investment climate with an anticorruption campaign. Growth slowed in 1999, in part due to tight government budget policies, which limited needed appropriations for anti-poverty programs, and the fallout from the Asian financial crisis. Growth should rebound to perhaps 4% In 2000, major civil disturbances in 2000 given reasonably favorable world commodity prices. April, and again in September and October, held down overall growth to 2.5%.

Bolivia, long one of the poorest and least developed Latin American countries, has made considerable progress toward the development of a market-oriented economy. Successes under President SANCHEZ DE LOZADA (1993-97) included the signing of a free trade agreement with Mexico and joining becoming an associate member of the Southern Cone Common Market (Mercosur), as well as the privatization of the state airline, telephone company, railroad, electric power company, and oil company. His successor, Hugo BANZER Suarez has tried to further improve the country's investment climate with an anticorruption campaign. Growth slowed in 1999, in part due to tight government budget policies, which limited needed appropriations for anti-poverty programs, and the fallout from the Asian financial crisis. In 2000, major civil disturbances in April, and again in September and October, held down overall growth to 2.5%. Bolivia's GDP failed to grow in 2001 due to the global slowdown and laggard domestic activity. Growth is expected to pick up in 2002, but the fiscal deficit and debt burden will remain high.

Bolivia, long one of the poorest and least developed Latin American countries, has made considerable progress in the 1990s toward the development of a market-oriented economy. Successes under President SANCHEZ DE LOZADA (1993-97) included the signing of a free trade agreement with Mexico and becoming an associate member of the Southern Cone Common Market (Mercosur), as well as the privatization of the state airline, telephone company, railroad, electric power company, and oil company. Growth slowed in 1999, in part due to tight government budget policies, which limited needed appropriations for anti-poverty programs, and the fallout from the Asian financial crisis. In 2000, major civil disturbances in April, and again in September and October, held down overall growth to 2.5%. Bolivia's GDP failed to grow in 2001 due to the global slowdown and laggard domestic activity. Growth is expected to pick picked up slightly in 2002, but the fiscal deficit first quarter of 2003 saw extensive civil riots and debt burden looting and loss of confidence in the government. Bolivia will remain high. highly dependent on foreign aid unless and until it can develop its substantial natural resources.

Bolivia, long one of the poorest and least developed Latin American countries, reformed its economy after suffering a disastrous economic crisis in the early 1980s. The reforms spurred real GDP growth, which averaged 4 percent 4% in the 1990s, and poverty rates fell. Economic growth, however, lagged again beginning in 1999 because of a global slowdown and homegrown factors such as political turmoil, civil unrest, and soaring fiscal deficits, all of which hurt investor confidence. In 2003, violent protests against the pro-foreign investment economic policies of President SANCHEZ DE LOZADA led to his resignation and the cancellation of plans to export Bolivia's newly discovered natural gas reserves to large northern hemisphere markets. Foreign investment dried up as companies adopted In 2005, the government passed a wait-and-see attitude regarding controversial natural gas law that imposes on the oil and gas firms significantly higher taxes as well as new President Carlos MESA's willingness to protect investor rights contracts that give the state control of their operations. Bolivian officials are in the face process of increased demands by radical groups that implementing the government expropriate foreign-owned assets. law; meanwhile, foreign investors have stopped investing and have taken the first legal steps to secure their investments. Real GDP growth in 2003 and 2004 2003-05 - helped by increased demand for natural gas in neighboring Brazil - was positive, but still below the levels seen during the 1990s. Bolivia Bolivia's fiscal position has improved in recent years, but the country remains dependent on foreign aid from multilateral lenders and foreign governments. governments to meet budget shortfalls. In 2005, the G8 announced a $2 billion debt-forgiveness plan over the next few decades that should help reduce some fiscal pressures on the government in the near term.

Bolivia, long one of the poorest and least developed Latin American countries, reformed its economy after suffering a disastrous economic crisis in the early 1980s. The reforms spurred real GDP growth, which averaged 4% in the 1990s, and poverty rates fell. Economic growth, however, lagged again beginning in 1999 because of a global slowdown and homegrown factors such as political turmoil, civil unrest, and soaring fiscal deficits, all of which hurt investor confidence. In 2003, violent protests against the pro-foreign investment economic policies of President ex-President SANCHEZ DE LOZADA led to his resignation and the cancellation of plans to export Bolivia's newly discovered natural gas reserves to large northern hemisphere markets. In 2005, the government passed a controversial natural gas law that imposes imposed significantly higher taxes on the oil and gas firms significantly higher taxes as well as and required production firms to sign new contracts that give the state control of their operations. operating contracts, which were completed in October 2006. Bolivian officials are in the process of implementing revamping the law; meanwhile, foreign investors have stopped investing defunct state-owned oil company and have taken the first legal steps acquiring majority ownership of five gas production, transportation, refining, and storage companies. The MORALES administration plans to secure their investments. increase state control over other sectors as well, including mining, electricity, telecommunications, transportation, and forestry. Real GDP growth in 2003-05 2003-06 - helped by increased demand for natural gas in neighboring Brazil - was positive, but still below the levels seen during the 1990s. Bolivia's fiscal position has improved in recent years, but and the country remains dependent on foreign aid from multilateral lenders and foreign governments to meet budget shortfalls. had a record 6% fiscal surplus for 2006. In 2005, the G8 announced a $2 billion debt-forgiveness plan over the next few decades decades. The International Monetary Fund and the World Bank forgave a total of approximately $1.8 billion of Bolivian debt in 2006 that should help has helped reduce some fiscal pressures on the government in the near term. government.

Bolivia is one of the poorest and least developed countries in Latin America. Following a disastrous economic crisis during the early 1980s, reforms spurred private investment, stimulated economic growth, and cut poverty rates in the 1990s. The period 2003-05 was characterized by political instability, racial tensions, and violent protests against plans - subsequently abandoned - to export Bolivia's newly discovered natural gas reserves to large northern hemisphere markets. In 2005, the government passed a controversial hydrocarbons law that imposed significantly higher royalties and required foreign firms then operating under risk-sharing contracts to surrender all production to the state energy company, which was made the sole exporter of natural gas. The law also required that the state energy company regain control over the five companies that were privatized during the 1990s - a process that is still underway. company. In 2006, early 2008, higher earnings for mining and hydrocarbons exports pushed the current account surplus to about 12% 9.4% of GDP and the government's higher tax take produced a fiscal surplus after years of large deficits. Debt relief from the G8 - announced in 2005 - also has significantly reduced Bolivia's public sector debt burden. Private investment as a share of GDP, however, remains among the lowest in Latin America, and inflation reached remained at double-digit levels in 2007. 2008. The decline in commodity prices in late 2008, the lack of foreign investment in the mining and hydrocarbon sectors, and the suspension of trade benefits with the United States will pose challenges for the Bolivian economy in 2009.

Bolivia is one of the poorest and least developed countries in Latin America. Following a disastrous economic crisis during the early 1980s, reforms spurred private investment, stimulated economic growth, and cut poverty rates in the 1990s. The period 2003-05 was characterized by political instability, racial tensions, and violent protests against plans - subsequently abandoned - to export Bolivia's newly discovered natural gas reserves to large northern hemisphere markets. In 2005, the government passed a controversial hydrocarbons law that imposed significantly higher royalties and required foreign firms then operating under risk-sharing contracts to surrender all production to the state energy company. In early 2008, company in exchange for a predetermined service fee. After higher earnings prices for mining and hydrocarbons exports pushed the current account surplus to 9.4% of GDP and the government's higher tax take produced a fiscal surplus after years of large deficits. Private investment as a share of GDP, however, remains among the lowest in Latin America, and inflation remained at double-digit levels 2008, the global recession in 2008. The 2009 slowed growth. A decline in commodity prices that began in late 2008, the a lack of foreign investment in the mining and hydrocarbon sectors, a poor infrastructure, and the suspension of trade benefits with the United States will pose challenges for the Bolivian economy in 2009. economy.

Bolivia is one of the poorest and least developed countries in Latin America. Following a disastrous economic crisis during the early 1980s, reforms spurred private investment, stimulated economic growth, and cut poverty rates in the 1990s. The period 2003-05 was characterized by political instability, racial tensions, and violent protests against plans - subsequently abandoned - to export Bolivia's newly discovered natural gas reserves to large northern hemisphere markets. In 2005, the government passed a controversial hydrocarbons law that imposed significantly higher royalties and required foreign firms then operating under risk-sharing contracts to surrender all production to the state energy company in exchange for a predetermined service fee. After higher prices for mining and hydrocarbons exports produced a fiscal surplus in 2008, the global recession in 2009 slowed growth. A decline Nevertheless, Bolivia recorded the highest growth rate in South America that year. During 2010 an increase in world commodity prices that began resulted in late 2008, the biggest trade surplus in history. However, a lack of foreign investment in the key sectors of mining and hydrocarbon sectors, a poor infrastructure, hydrocarbons and the suspension of trade benefits with the United States will higher food prices pose challenges for the Bolivian economy.

Bolivia is one of the poorest and least developed countries in Latin America. Following a disastrous economic crisis during the early 1980s, reforms spurred private investment, stimulated economic growth, and cut poverty rates in the 1990s. The period 2003-05 was characterized by political instability, racial tensions, and violent protests against plans - subsequently abandoned - to export Bolivia's newly discovered natural gas reserves to large northern hemisphere Northern Hemisphere markets. In 2005, the government passed a controversial hydrocarbons law that imposed significantly higher royalties and required foreign firms then operating under risk-sharing contracts to surrender all production to the state energy company in exchange for a predetermined service fee. After higher prices for mining and hydrocarbons exports produced a fiscal surplus in 2008, the The global recession in 2009 slowed growth. Nevertheless, growth, but Bolivia recorded the highest growth rate in South America that year. during 2009. During 2010 an increase in 2010-12 high world commodity prices resulted in the biggest sustained rapid growth and large trade surplus in history. surpluses. However, a lack of foreign investment in the key sectors of mining and hydrocarbons and higher food prices hydrocarbons, along with growing conflict among social groups pose challenges for the Bolivian economy.

Bolivia is a resource rich country with strong growth attributed to captive markets for natural gas exports. However, the country remains one of the poorest and least developed countries in Latin America. America because of state-oriented policies that deter investment and growth. Following a disastrous economic crisis during the early 1980s, reforms spurred private investment, stimulated economic growth, and cut poverty rates in the 1990s. The period 2003-05 was characterized by political instability, racial tensions, and violent protests against plans - subsequently abandoned - to export Bolivia's newly discovered natural gas reserves to large Northern Hemisphere markets. In 2005, the government passed a controversial hydrocarbons law that imposed significantly higher royalties and required foreign firms then operating under risk-sharing contracts to surrender all production to the state energy company in exchange for a predetermined service fee. The global recession slowed growth, but Bolivia recorded the highest growth rate in South America during 2009. During 2010-12 high world High commodity prices since 2010 sustained rapid growth and large trade surpluses. However, a lack of foreign investment in the key sectors of mining and hydrocarbons, along with growing conflict among social groups pose challenges for the Bolivian economy.

Bolivia is a resource rich country with strong growth attributed to captive markets for natural gas exports. exports – to Brazil and Argentina. Gas accounts for roughly 50% of Bolivia’s total exports and will fund more than half of its 2015 budget. However, the country remains one of the least developed countries in Latin America because of state-oriented policies that deter investment and growth. Following a disastrous economic crisis during the early 1980s, reforms spurred private investment, stimulated economic growth, and cut poverty rates in the 1990s. The period 2003-05 was characterized by political instability, racial tensions, and violent protests against plans - subsequently abandoned - to export Bolivia's newly discovered natural gas reserves to large Northern Hemisphere markets. In 2005, the government passed a controversial hydrocarbons law that imposed significantly higher royalties and required foreign firms then operating under risk-sharing contracts to surrender all production to the state energy company in exchange for a predetermined service fee. The global recession slowed growth, but Bolivia recorded the highest growth rate in South America during 2009 and has averaged 5.3% growth each year since 2009. High commodity prices since 2010 sustained rapid growth and large trade surpluses. However, a lack of foreign investment in the key sectors of mining and hydrocarbons, along with conflict among social groups pose challenges for the Bolivian economy. President Evo MORALES passed an investment law and promised not to nationalize additional industries in an effort to improve Bolivia’s investment climate. The global decline in oil prices in late 2014 exerted downward pressure on the price Bolivia receives for exported gas and may result in lower GDP growth rates and losses in government revenue in 2015.

Bolivia is a resource rich country with strong growth attributed to captive markets for natural gas exports – to Brazil and Argentina. Gas accounts for roughly 50% of Bolivia’s Bolivia's total exports and will fund more than half of its 2015 budget. However, the country remains one of the least developed countries in Latin America because of state-oriented policies that deter investment and growth.
Following a disastrous economic crisis during the early 1980s, reforms spurred private investment, stimulated economic growth, and cut poverty rates in the 1990s. The period 2003-05 was characterized by political instability, racial tensions, and violent protests against plans - subsequently abandoned - to export Bolivia's newly discovered natural gas reserves to large Northern Hemisphere markets. In 2005, the government passed a controversial hydrocarbons law that imposed significantly higher royalties and required foreign firms then operating under risk-sharing contracts to surrender all production to the state energy company in exchange for a predetermined service fee. The global recession slowed growth, but Bolivia recorded the highest growth rate in South America during 2009 and has averaged 5.3% growth each year since 2009. High commodity prices since between 2010 and 2013 sustained rapid growth and large trade surpluses. However, a The global decline in oil prices in late 2014 exerted downward pressure on the price Bolivia receives for exported gas and resulted in lower GDP growth rates and losses in government revenue in 2015.
A lack of foreign investment in the key sectors of mining and hydrocarbons, along with conflict among social groups groups, pose challenges for the Bolivian economy. In 2015, President Evo MORALES expanded efforts to court international investment and boost Bolivia’s energy production capacity. MORALES passed an investment law and promised not to nationalize additional industries in an effort to improve Bolivia’s the investment climate. The global decline in oil prices in late 2014 exerted downward pressure on the price Bolivia receives for exported gas and may result in lower GDP growth rates and losses in government revenue in 2015.

Bolivia is a resource rich country with strong growth attributed to captive markets for natural gas exports – to Brazil and Argentina. Gas accounts for roughly 50% of Bolivia's total exports and will fund more than half of its 2015 budget. However, the country remains one of the least developed countries in Latin America because of state-oriented policies that deter investment and growth.
Following a disastrous economic crisis during the early 1980s, reforms spurred private investment, stimulated economic growth, and cut poverty rates in the 1990s. The period 2003-05 was characterized by political instability, racial tensions, and violent protests against plans - subsequently abandoned - to export Bolivia's newly discovered natural gas reserves to large Northern Hemisphere markets. In 2005, the government passed a controversial hydrocarbons law that imposed significantly higher royalties and required foreign firms then operating under risk-sharing contracts to surrender all production to the state energy company in exchange for a predetermined service fee. The global recession slowed growth, but Bolivia recorded the highest growth rate in South America during 2009 and has averaged 5.3% growth each year since 2009. High commodity prices between 2010 and 2013 2014 sustained rapid growth and large trade surpluses. surpluses with GDP growing 6.8% in 2013 and 5.4% in 2014. The global decline in oil prices that began in late 2014 exerted downward pressure on the price Bolivia receives for exported gas and resulted in lower GDP growth rates - 4.9% in 2015 and 4.3% in 2016 - and losses in government revenue in 2015. as well as fiscal and trade deficits.
A lack of foreign investment in the key sectors of mining and hydrocarbons, along with conflict among social groups, pose challenges for the Bolivian economy. In 2015, President Evo MORALES expanded efforts to court international investment and boost Bolivia’s energy production capacity. MORALES passed an investment law and promised not to nationalize additional industries in an effort to improve the investment climate. In early 2016, the Government of Bolivia approved the 2016-20 National Economic and Social Development Plan aimed at maintaining growth of 5% and reducing poverty.

Bolivia is a resource rich country with strong growth attributed to captive markets for natural gas exports – to Brazil and Argentina. However, the country remains one of the least developed countries in Latin America because of state-oriented policies that deter investment and growth.
investment. Following a disastrous an economic crisis during the early 1980s, reforms in the 1990s spurred private investment, stimulated economic growth, and cut poverty rates in the 1990s. rates. The period 2003-05 was characterized by political instability, racial tensions, and violent protests against plans - subsequently abandoned - to export Bolivia's newly discovered natural gas reserves to large Northern Hemisphere markets. In 2005, 2005-06, the government passed a controversial hydrocarbons law hydrocarbon laws that imposed significantly higher royalties and required foreign firms then operating under risk-sharing contracts to surrender all production to the state energy company in exchange for a predetermined service fee. fee; the laws engendered much public debate. High commodity prices between 2010 and 2014 sustained rapid growth and large trade surpluses with GDP growing 6.8% in 2013 and 5.4% in 2014. The global decline in oil prices that began in late 2014 exerted downward pressure on the price Bolivia receives for exported gas and resulted in lower GDP growth rates - 4.9% in 2015 and 4.3% in 2016 - and losses in government revenue as well as fiscal and trade deficits.
A lack of foreign investment in the key sectors of mining and hydrocarbons, along with conflict among social groups, pose challenges for the Bolivian economy. In 2015, President Evo MORALES expanded efforts to court international investment and boost Bolivia’s energy production capacity. MORALES passed an investment law and promised not to nationalize additional industries in an effort to improve the investment climate. In early 2016, the Government of Bolivia approved the 2016-20 2016-2020 National Economic and Social Development Plan aimed at maintaining growth of 5% and reducing poverty.

Bolivia is a resource rich country with strong growth attributed to captive markets for natural gas exports – to Brazil and Argentina. However, the country remains one of the least developed countries in Latin America because of state-oriented policies that deter investment.
Following an economic crisis during the early 1980s, reforms in the 1990s spurred private investment, stimulated economic growth, and cut poverty rates. The period 2003-05 was characterized by political instability, racial tensions, and violent protests against plans - subsequently abandoned - to export Bolivia's newly discovered natural gas reserves to large Northern Hemisphere markets. In 2005-06, the government passed hydrocarbon laws that imposed significantly higher royalties and required foreign firms then operating under risk-sharing contracts to surrender all production to the state energy company in exchange for a predetermined service fee; the laws engendered much public debate. High commodity prices between 2010 and 2014 sustained rapid growth and large trade surpluses with GDP growing 6.8% in 2013 and 5.4% in 2014. The global decline in oil prices that began in late 2014 exerted downward pressure on the price Bolivia receives for exported gas and resulted in lower GDP growth rates - 4.9% in 2015 and 4.3% in 2016 - and losses in government revenue as well as fiscal and trade deficits.
A lack of foreign investment in the key sectors of mining and hydrocarbons, along with conflict among social groups, pose challenges for the Bolivian economy. In 2015, President Evo MORALES expanded efforts to court international investment and boost Bolivia’s energy production capacity. MORALES passed an investment law and promised not to nationalize additional industries in an effort to improve the investment climate. In early 2016, the Government of Bolivia approved the 2016-2020 National Economic and Social Development Plan aimed at maintaining growth of 5% and reducing poverty.