Bolivia 

Bolivia country policy

Policy established 04 April 2011

• The country ceiling is 30 mln euro
• Early warning signal 30 mln euro
• Private buyers: SIF facility

Country class: 6

Bolivia country facts

Atradius Dutch State Business Economic Research
Country Report last updated :  11 November 2010 
Country :  BOLIVIA 

Political Situation
Stable Now But Still Polarised

Head of state
President Evo Morales.

Form of government
Government of the Movimiento al Socialismo (MAS).

Internal Economic Situation
Structurally Weak Economy

General situation
Economic performance is narrowly based on minerals and agricultural products and vulnerable to price swings. Since 2008 more moderate GDP-growth as exports and mineral prices dipped for a while and new FDI were hampered by adverse economic measures. After strong disinflation in 2010H1, rising consumer prices in H2. Although recovered, still vulnerable banking sector in view of high dollarisation (>50% of deposits), a currency mismatch in the private sector and political tensions, easily triggering large-scale deposit withdrawals. Widespread informal economy that is boosted by production of drugs; poor score on the TI-corruption index (120th out of 180).
 
External Economic Situation :   Solid On The Short Term

Main sources of foreign exchange
Minerals (gas, oil, tin, zinc, gold, silver); soybeans; coca; workers’ remittances.

Main foreign markets
Latin America (71%), USA (8%), EU (7%).

Main expenses of foreign exchange
Intermediate goods/raw materials (62%), capital goods (20%).

Balance of payments 
Sharp drop in exportrevenues in 2009 (lower mineral prices) caused much less high trade and current account surpluses. Since 2010 some recovery. The disputed nationalisation measures have not triggered major capital flight but they have hampered fresh western FDI. The Boliviano has remained immune to the global credit crisis and stable vs US$ since Oct 2008.