The Bolivia economy is driven by natural gas, mining, and agriculture. Hydrocarbons and minerals like lithium and silver are key exports, while coca and quinoa support rural livelihoods. Nationalization policies have increased state control over resources, but economic diversification remains limited. High poverty rates, infrastructure deficits, and political instability challenge growth. Efforts to expand lithium production for global battery markets are underway, though bureaucratic hurdles and low foreign investment slow progress.
Bolivia Economy Size
Bolivia’s economy, valued at $45 billion, is mid-sized for South America. Natural gas, mining, and agriculture underpin its GDP, though economic growth faces challenges from political instability. See Bolivia GDP.
Bolivia Purchasing Power Parity (PPP)
Bolivia’s economy has a PPP GDP of $130 billion, nearly triple its $45 billion nominal GDP, due to low costs for agriculture and mining. PPP per capita is around $10,000, reflecting modest purchasing power. Gas and minerals benefit from domestic pricing, but political instability limits growth. PPP highlights Bolivia’s potential for domestic market expansion if reforms succeed.
Bolivia Growth Rate
The economic growth rate is 1.8% in 2024, supported by mining and gas exports. Rising lithium demand boosts prospects, but political instability and declining gas reserves restrain growth. Agriculture contributes modestly, while fiscal deficits and currency pressures limit investment. Recovery hinges on stabilizing governance and attracting foreign capital.
Bolivia Inflation
Bolivia’s inflation rate is about 5% in 2024, fueled by currency depreciation and rising global commodity prices. Declining gas exports increase import costs, while political instability disrupts supply chains. Food price volatility from agricultural setbacks adds pressure. Central bank measures aim to stabilize, but fiscal deficits sustain moderate inflation.
