Bolivia 

Bolivia country policy

Policy established 18 February 2000

• Off cover
• Public buyers: ORIO facility
• Private buyers: SIF facility

Country class: 6

Restrictions

• Special conditions, consult your accountmanager

Bolivia country facts

Atradius DSB  Economic Research
Country Report last updated :  11 November 2009 
Country :  BOLIVIA 

Political Situation
Unstable And 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
Sustained GDP-growth which is narrowly based on minerals and agricultural products and vulnerable to price swings. The global recession exerted a negative impact on export revenues and private transfers, contributing to a less high GDP-growth in 2009 (but no recession). Low productivity in the traditional sectors is hardly generating jobs for the impoverished population. Strong disinflation (1.4% yoy in July 2009) thanks to a drop in food prices. 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. Large informal economy is boosted by production of drugs; poor score on the TI-corruption index (102nd 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. The disputed nationalisation measures have not triggered major capital flight but they have hampered fresh western FDI. So far the Boliviano has remained immune to the global credit crisis and stable vs US$ since Oct 2008.