Bolivia - Country PESTLE Report

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Use this report to: Analyze the political, economic, social, and technological (PEST) structure of a country to identify its potential as an
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direction of operations in the economy.
Report Code: ML00003-012 October 2023
Bolivia
In-depth PEST Insights
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PEST Insights
Table of Contents
Overview ............................................................................................................................................................................... 4
Catalyst ............................................................................................................................................................................. 4
Summary ........................................................................................................................................................................... 4
Key highlights ................................................................................................................................................................ 4
Key developments (October 2022–September 2023)........................................................................................................ 5
Key economic updates ...................................................................................................................................................... 5
Key Facts and Geographic Location ...................................................................................................................................... 7

Key facts ............................................................................................................................................................................ 7
Geographical location ....................................................................................................................................................... 8
Political Landscape................................................................................................................................................................ 9
Summary ........................................................................................................................................................................... 9
Evolution ......................................................................................................................................................................... 10
Structure and policies...................................................................................................................................................... 11
Key political figures ..................................................................................................................................................... 11
Structure of government ............................................................................................................................................ 11
Composition of government ....................................................................................................................................... 12
Foreign and defense policies ...................................................................................................................................... 13
Governance indicators ................................................................................................................................................ 13
Economic Landscape........................................................................................................................................................... 15
Summary ......................................................................................................................................................................... 15
Evolution ......................................................................................................................................................................... 15
Financial system .......................................................................................................................................................... 17
Performance ................................................................................................................................................................... 17
GDP and growth rate .................................................................................................................................................. 17
GDP composition by sector......................................................................................................................................... 18
Fiscal situation ............................................................................................................................................................ 22
International investment position .............................................................................................................................. 23
Monetary situation ..................................................................................................................................................... 25
Social Landscape ................................................................................................................................................................. 27

Summary ......................................................................................................................................................................... 27
Evolution ......................................................................................................................................................................... 27
Demographic composition .......................................................................................................................................... 27
Religious composition ................................................................................................................................................. 29
Education .................................................................................................................................................................... 29
Healthcare................................................................................................................................................................... 30
www.MarketLine.com 2
PEST Insights
Performance ................................................................................................................................................................... 31
Healthcare................................................................................................................................................................... 31
Education .................................................................................................................................................................... 32
Technological Landscape .................................................................................................................................................... 33

Summary ......................................................................................................................................................................... 33
Evolution ......................................................................................................................................................................... 33
Intellectual property ................................................................................................................................................... 34
Research and development ........................................................................................................................................ 34
Performance ................................................................................................................................................................... 34
Opportunity sectors .................................................................................................................................................... 34
About MarketLine ............................................................................................................................................................... 35
Contact Us........................................................................................................................................................................... 35
List of Figures
Figure 1: Key economic indicators trend 6
Figure 2: Map of Bolivia, 2023 8
Figure 3: Timeline of key political events 10
Figure 4: Key political figures 11
Figure 5: Composition of seats of the chamber of deputies, October 2021 12
Figure 6: Evolution of GDP (%), 2012–22 16
Figure 7: Real GDP and GDP growth (constant prices), 2018–27f 18
Figure 8: GDP by sector, 2022 18
Figure 9: Agricultural output, 2018–23f 20
Figure 10: Industrial output, 2018–23f 21
Figure 11: Services output, 2018–23f 22
Figure 12: Volume of export and import of goods and services growth, 2018–27f 23
Figure 13: FDI inflows, 2017–22, and number of Greenfield investments, 2012–22 24
Figure 14: Consumer price index and CPI-based inflation, 2018–27f 25
Figure 15: Unemployment rate, 2018–27f 26
Figure 16: Religion composition, 2018 est. 29
Figure 17: Total healthcare expenditure, 2018–27f 31
Figure 18: Public education expenditure, 2011–21 32
Figure 19: Internet users, 2018–23f 34
List of Tables
Table 1: Key facts, 2023 ........................................................................................................................................................ 7
Table 2: Population by gender (as a percentage of total population), 2022 ...................................................................... 28
PEST Insights
Overview
Catalyst
This profile analyzes the political, economic, social, and technological (PEST) structure in the country.
Summary
Key highlights
• In January 2023, Yacimientos de Litio Bolivianos (YLB), a state-owned Bolivian company, inked a substantial
agreement valued at $1 billion with several Chinese corporations, including CATL, BRUNP, and CMOC (CBC).
This agreement grants Chinese firms the right to conduct exploration activities for lithium deposits within
Bolivia.
• In May 2023, the Bolivian Senate gave its approval to the "gold law," a legislative initiative designed to bolster
the nation's foreign currency reserves. This newly enacted law empowers the central bank to acquire
unprocessed gold from local mining cooperatives and then process it into either gold currency or bars for
trading on international markets.
• In July 2023, Bolivia initiated an exploration campaign encompassing five salt flats, including locations such as
Pastos Grandes and Potosí. The objective is to conduct drilling operations for the creation of 68 new wells,
aimed at increasing the nation's lithium reserves.
• According to MarketLine, the real GDP growth was recorded at 3.5% in 2022, mainly due to recovery in
demand and fiscal expansion. In 2023, the economy is forecast to grow by 2.0% due to tighter monetary policy
and weakening exports.
• Bolivia is facing a severe water shortage due to a prolonged drought and unusually high temperatures in
August and September 2023. Climate change is affecting the Andes glaciers, which provide freshwater to the
region. In high-altitude areas like El Alto, residents are experiencing water rationing, limiting access to certain
times of the day. While authorities hope to sustain water reserves until December's rainy season, the situation
could worsen if the El Nino weather pattern hits, exacerbating the crisis. This dry spell is already impacting
farming communities and livestock in the area.
• According to the World Economic Forum, Global Gender Gap Index (2023), Bolivia was ranked 56th out of 146
nations. Additionally, the country ranked 90th and 92nd on the economic participation and opportunity and
educational attainment indicators respectively.
• According to UNCTAD, Technology and Innovation Report (2023), Bolivia ranked 101st out of 166 nations on the
overall indicator of utilizing frontier technologies. Frontier technologies refer to artificial intelligence (AI), the
internet of things (IoT), big data, blockchain, 5G, 3D printing, robotics, drones, gene editing, and
nanotechnology.
• According to MarketLine, the number of mobile subscribers increased from 6.4 million in 2009 to 12.0 million
in 2022. Mobile penetration stood at 100.4 per 100 people in 2022. The number of internet users grew from
1.7 million in 2009 to 8.3 million in 2022, with 69.2% of the population having access to the internet.
PEST Insights
• According to Global Forest Watch, Bolivia experienced significant tree cover loss from 2001 to 2022, totaling
7.27 million hectares. This loss resulted in 3.30 gigatons of CO₂e emissions. The primary driver of this tree
cover loss was deforestation, accounting for 62%. Furthermore, one specific region in Bolivia was responsible
for 69% of the total tree cover loss during this period.
Key developments (October 2022–September 2023)

• In January 2023, India and Bolivia signed an agreement with an aim to increase cooperation in the lithium and
battery sector.
• In April 2023, Bolivia and Venezuela confirmed their strategic alliance and signed 13 agreements with an aim
to increase cooperation across sectors including oil, gas, mining, education, healthcare, and culture.
• In July 2023, Devvstream, a leading carbon credit project development and generation firm specializing in
technology solutions, announced a memorandum of understanding (MoU) for Carbon Credit Management
covering approximately 8.3 million hectares of Amazon Rainforest land in Bolivia.
• In July 2023, Iran and Bolivia signed a MoU with respect to increase cooperation in the field of defence and
security.
• In July 2023, a MoU was signed between the Bolivian-Paraguayan Chamber and Paraguay's Ministry of
Industry, aimed at bolstering relations and fostering industrial and trade cooperation between the two
nations.
• In July 2023, Bolivia's lithium reserves have been upgraded to 23 million metric tons, surpassing the prior
estimate of 21 million metric tons. President Luis Arce confirmed this adjustment and disclosed ongoing
discussions with the European Union regarding potential lithium investments. Bolivia solidifies its status as a
major global lithium resource holder.
• In August 2023, India's Finance Minister, Nirmala Sitharaman, held a meeting with Bolivian Minister of
Development Planning, Sergio Armando Cusicanqui Loayza, to explore opportunities for enhancing trade and
investment relations between India and Bolivia.
Key economic updates

Real GDP growth rate:
According to Bolivia’s government, the GDP growth rate recorded 2.3% in Q1 2023, compared to the growth rate of
4.0% recorded in Q1 2022. The growth in Q1 2023 was mainly driven by domestic demand. Other sectors that
contributed towards the growth included services (5.2%), transport and storage (4.1%), electricity, gas, and water
(3.9%), construction (3.5%), and financial institutions (3.3%).
Inflation and interest rate:

The National Institute of Statistics of Bolivia reported a consistent decline in inflation over three consecutive months,
reaching 2.7% in July 2023. However, in August 2023, the inflation rate reversed its trend, rising to 3.1%.
According to the Central Bank of Bolivia, the interest rate stood at 3.96% as of July 2023.
PEST Insights
External trade:
According to the National Statistics Institute of Bolivia, the total value of exports reached $0.9 billion from January to
June 2023, marking a decrease from the $1.1 billion recorded in the previous period from July to December 2022.
Simultaneously, the National Statistics Institute of Bolivia reported that the total value of imports stood at $0.9 billion
for the first half of 2023, reflecting a decline from the $1.2 billion recorded in the July to December 2022 period.
Unemployment rate:
The National Statistics Institute of Bolivia reported a third consecutive quarterly increase in the unemployment rate,
which reached 3.6% in Q1 2023. This figure represents a rise from the 3.2% recorded in the preceding quarter.
Figure 1: Key economic indicators trend
Source: MarketLine analysis based on information from the National Institute of Statistics of Bolivia
PEST Insights
Key Facts and Geographic Location

Key facts
Table 1: Key facts, 2023
Country and capital
Full name Plurinational State of Bolivia
La Paz (administrative capital), Sucre (constitutional [legislative and
Capital city judicial] capital)
Government
Government type Presidential republic
President Luis Alberto ARCE Catacora (since 8 November 2020); Vice
Head of state President David Choquehuanca Cespedes (since 8 November 2020)
President Luis Alberto ARCE Catacora (since 8 November 2020); Vice
Head of government President David Choquehuanca Cespedes (since 8 November 2020)
Population (2022) 12.2 million
Currency Bolivianos (BOB)
GDP per capita adjusted by purchasing power
parity (2022) $9,939.6
Internet domain .bo
Demographic details
Life expectancy (2022) 72.5 years (total population)
74.0 years (women)
71.0 years (men)
Ethnic composition (2009 est.) Mestizo (mixed White and Amerindian ancestry) 68%, Indigenous 20%,
White 5%, Cholo/Chola 2%, African descent 1%, other 1%, unspecified
3%; 44% of respondents indicated feeling part of some indigenous group,
predominantly Quechua or Aymara
Major religions (2018 est.) Roman Catholic 70%, Evangelical 14.5%, Adventist 2.5%, Church of Jesus
Christ 1.2%, agnostic 0.3%, atheist 0.8%, other 3.5%, none 6.6%,
unspecified 0.6%
Country area 1,098,581km2
Spanish (official) 68.1%, Quechua (official) 17.2%, Aymara (official)

Language (2012 est.) 10.5%, Guarani (official) 0.6%, other 1.5%, unspecified 2.1%
Major export items Gold, natural gas, zinc, silver, soy products, tin
Major import items Cars, refined petroleum, delivery trucks, iron, buses
Source: MarketLine
PEST Insights
Geographical location
Bolivia is situated in Central South America, southwest of Brazil. The country shares its border with Brazil, Argentina,
Paraguay, Chile, and Peru.
Figure 2: Map of Bolivia, 2023
Source: MarketLine analysis based on information from: The CIA World Factbook
PEST Insights
Political Landscape
Summary
From the mid-1990s to 2005, Bolivia was affected by severe social and political instability. These social upheavals trace
their origins to the mid-1990s when the government of President Gonzalo Sanchez de Lozada embarked on a large-
scale privatization program. Under the program, a significant proportion of state-owned enterprises, including those in
the hydrocarbons, telecommunications, electricity, and civil aviation industries, were privatized. Subsequently, these
policies were carried forward by the government of Hugo Banzer. However, massive demonstrations in 2000 followed
privatization of the municipal water supply system in Cochabamba. The government’s coca eradication program also
attracted massive opposition from indigenous coca farmers, especially in the Chapare province. Due to growing public
opposition against his policy to promote exports of natural gas, President Lozada resigned from office in 2003. As the
political and social instability continued, Evo Morales, an indigenous leader with strong support among coca planters,
emerged as a key player in the Bolivian political landscape. He won the 2005 presidential elections and was appointed
for a second term in 2009. In October 2014, Morales was re-elected for a third term as president. He functioned as both
the head of the state and the government and was responsible for policy implementation.
The Bolivian political landscape is divided in its stance on political reform. The government advocates greater political
empowerment of the indigenous population, while the opposition wants greater autonomy for the resource-rich
regions of the country. In December 2009, President Morales was re-elected for a second term after his party, the
Movement for Socialism (Movimiento al Socialismo [MAS]), won more than 64% of votes. In the April 2010 regional and
municipal elections, MAS emerged as the single largest party, winning governorships in six of the nine departments, as
well as 231 of 337 mayoral contests. In 2013, Bolivia’s Constitutional Court passed a law which allowed the incumbent
Evo Morales to stand for a third presidential term in the 2014 elections. Following the elections in March 2015, when
the ruling MAS lost some notable seats to the opposition (including the mayoralty of El Alto and department of La Paz,
former bastions of support), the government began to push for the introduction of indefinite re-election for Mr.
Morales and Vice President Álvaro García Linera. A constitutional amendment was approved by lawmakers on
September 26, 2015, and the bill was put to a national referendum vote in February 2016 but was defeated. Despite
this decision, the Movement for Socialism party was keen to make legislative changes to allow another term for
Morales as the president. The party unanimously voted for Morales’ candidacy in the 2019 elections, which led to
civilians protesting the decision. General elections were held on October 20, 2019. The result was declared on October
25, 2019, which declared Evo Morales as the winner with 47.1% of votes and Carlos Mesa as the runner up with 36.5%
of votes. There were disputes about results after an unexplained 24-hour break in its transmission. Evo Morales won by
a margin greater than 10 points over Carlos Mesa, which meant a run-off second-round vote was not required and that
led to widespread protests across the country.
The protests continued until November 2019 and eventually Morales agreed to hold new elections. On November 10,
2019, Morales, and Vice President Álvaro García Linera resigned from office, due to political pressure from opponents
and the loss of support from former political allies, police, and military. This was followed by the resignation of Adriana
Salvatierra Arriaza, the president of the Bolivian Senate and president of the Chamber of Deputies, thus exhausting the
constitutional line of succession. As a result, on November 12, 2019, the second vice president of the Senate, Jeanine
Anez (Democrat Social Movement), assumed office as the interim president. In December 2019, an arrest warrant was
issued for Morales by Bolivian prosecutors for alleged sedition and terrorism. The 2019 elections were scheduled for
rerun in May 2020 but were postponed due to the COVID-19 pandemic. Elections were held on October 18, 2020,
where Luis Alberto Arce Catacora became the new president and David Choquehuanca Cespedes became the new vice
president of Bolivia in November 2020. The next election is scheduled to be held in 2025.
PEST Insights
Evolution
Figure 3: Timeline of key political events
Source: MarketLine analysis
PEST Insights
Structure and policies

Key political figures
• Head of state and government: President Luis Alberto ARCE Catacora (since November 2020)
Figure 4: Key political figures
Source: MarketLine analysis
Structure of government
The constitution, adopted in 2009, defines Bolivia as a “Social Unitarian State”. Bolivia is a presidential republic, with
the president functioning as both the head of state and government. The president, who is directly elected to serve a
five-year term, is the chief executive authority and exercises extensive powers over the political landscape in Bolivia. He
commands the armed forces, appoints the cabinet, and frames and implements economic policies.
Legislature
The bicameral parliament, known as the National Congress, consists of the 36-member Senate, which is the upper
house, and the 130-member Chamber of Deputies, which is the lower house. The members of the Senate are elected
through the proportional representation system to serve five-year terms. Of the 130 members of the Chamber of
Deputies, 70 uni-nominal candidates are directly elected from their districts, seven "special" indigenous deputies are
directly elected from non-contiguous indigenous districts, while the remaining 53 are elected by proportional
representation from party lists to serve five-year terms. The parliament’s powers are limited to debating and approving
legislation initiated by the president.
Provincial governments
Bolivia is divided into nine departments (departamentos): Beni, Chuquisaca, Cochabamba, La Paz, Oruro, Pando, Potosi,
Santa Cruz, and Tarija.
Key political parties

Movement Toward Socialism (MAS)
The Movement for Socialism (Movimiento al Socialismo [MAS]) is a center-left political party in Bolivia. The party was
founded in the mid-1990s by Evo Morales to articulate the opposition of the poor indigenous community to the coca
eradication program being undertaken by the government. Since then, MAS has been instrumental in leading several
demonstrations against the alleged anti-poor conservative economic policies. During 2000–11, the party supported
nationalization of the hydrocarbon industry and legalization of coca farming. Morales was elected as president for his
PEST Insights
first term in 2006, which made him the first indigenous president in Bolivia and Latin America. The December 2009
presidential elections again saw Evo Morales emerging victorious, with more than 60% of votes. As of February 2013,
the party had 88 seats in the Chamber of Deputies. In the October 2014 presidential elections, the party won 88 seats
in the Chamber of Deputies, with 61.4% of votes. In October 2020, the party won 75 seats with 55.1% of votes in the
Chamber of Deputies.
Comminuty Citizen Alliance (ACC)

In October 2020, the party won 39 seats with 28.8% votes in the Chamber of Deputies.
We Believe or Creemos
We Believe or Creemos is a right-wing political alliance party in Bolivia consisting of Solidarity Civic Unity (UCS) and the
Christian Democratic Party (PDC). In October 2020, the party won 16 seats with 14% of votes in the Chamber of
Deputies.
Composition of government
Figure 5: Composition of seats of the chamber of deputies, October 2021
Source: MarketLine analysis based on information from the CIA World Factbook
Key economic and social policies

The Bolivian Highway Administration was able to execute 76 road maintenance projects as part of the 2021 state
budget. According to the 2022 state budget, $5 billion has been allocated for public investments, 25% higher than the
previous year.
In December 2022, the lower house approved the 2023 budget. According to this budget, the economy is projected to
experience a growth rate of 4.8% in 2023. Additionally, the government plans to allocate $4.0 billion for the agricultural
sector, which encompasses investments in the exploration and production of hydrocarbons and biodiesel. Furthermore,
the 2023 budget has set aside $1.9 billion for infrastructure development, encompassing road construction, air
PEST Insights
transport enhancements, social housing initiatives, and improvements in the transport and telecommunications
sectors.
Foreign and defense policies

Bolivia maintains good relations with all Latin American countries except Chile, with which it has a long-running
territorial dispute. In particular, the Morales administration promoted cordial diplomatic relations with Cuba and
Venezuela. The country is an associate member of MERCOSUR, the biggest trade bloc in South America, consisting of
Brazil, Argentina, Uruguay, Paraguay, and Venezuela. In December 2012, Bolivia signed an incorporation protocol with
MERCOSUR, which would make it a full member upon ratification by each individual member state’s legislatures. Bolivia
supported the formation of the Banco del Sur (Bank of the South) in 2009, a financial institution to provide credit and
foster regional integration between Latin American member countries.
Since 2010, diplomatic relations between Chile and Bolivia have deteriorated. In March 2011, the Bolivian president
announced the decision to sue Chile in an international court to reinstate the country’s access to the Pacific Coast. In
the Pacific war during 1879–83, Bolivia lost 120,000km2 of land and 400km of coastline to Chile. However, Bolivia’s
position is weakened in this matter due to the Treaty of Peace and Friendship signed between the two countries in
1904, which defines boundaries for both countries through 96 specific points. The government has also been a severe
critic of the US’s economic and foreign policies. After an eight-year hiatus, in March 2017, the US tried to restore
bilateral relations between the two countries. The United States Deputy Assistant Secretary for Western Hemisphere
Affairs, Michael Fitzpatrick, visited Bolivia for the first time in eight years, and met with three of the Bolivian Foreign
Ministry’s deputy ministers. In June 2018, President Evo Morales began his international tour, during which he visited
Russia and planned to visit the Netherlands and China.
On June 14, 2018, President Morales signed agreements with Russia worth over $1 billion in sectors including
hydrocarbons, mining, and IT, among others. In March 2019, India and Bolivia signed eight MoUs on culture, space, and
medicine. On December 22, 2019, Bolivia announced its entry into the Lima Group regional bloc, which was set up to
find a solution to the Venezuelan crisis. In August 2020, Bolivia received medical aid from India, which included six tons
of essential medicines, 300,000 hydroxychloroquine tablets, and protective gear. In May 2021, Bolivia and Mexico
announced plans to lift the visa requirement for citizens of both the countries for up to 180 days stay. The bilateral ties
between Bolivia and Mexico will promote the tourism, cultural, and business sectors of both countries. On May 23,
2022, Argentina and Bolivia signed an agreement to create the “Argentine-Bolivian Working Group” to strengthen
bilateral relation between the armed forces of both nations. The agreement aims to rebuild the countries’ historical
relationship and enable the exchange of mutual assistance when needed.
In June 2023, China and Russia announced a joint investment of $1.4 billion in lithium production facilities within
Bolivia. This substantial investment aims to bolster Bolivia's lithium industry by facilitating the establishment of two
production plants equipped with direct lithium extraction (DLE) technology. These facilities to be situated in the Uyuni
and Coipasa salt flats will play a crucial role in enhancing Bolivia's lithium production capabilities.
Governance indicators
The World Bank report on governance uses voice and accountability, political stability and absence of violence,
government effectiveness, regulatory quality, rule of law, and control of corruption as indicators for 215 countries and
territories during 1996–2023. For any country, a percentile score of zero corresponds to the lowest possible rank and a
percentile score of 100 corresponds to the highest possible rank.
Bolivia was ranked in the 39.6 percentile on the voice and accountability parameter in 2022. The parameter measures
the extent to which a country's citizens can participate in selecting their government, along with freedom of expression,
freedom of association, and availability of free media. Bolivia had a lower rank than its neighbour Peru, which had a
percentile rank of 49.8.
Bolivia was ranked in the 36.3 percentile on the political stability and absence of violence parameter in 2022. Political
stability and absence of violence measures perceptions of the likelihood that the government will be destabilized or
PEST Insights
overthrown by unconstitutional or violent means, including domestic violence and terrorism. Peru was ranked lower
than Bolivia, which was ranked in the 27.8 percentile.
Bolivia was ranked in the 31.6 percentile on the government effectiveness parameter in 2022. The parameter measures
the quality of public services; the quality of civil services and degree of its independence from political pressures; the
quality of policy formulation and implementation; and the credibility of the government's commitment to such policies.
Bolivia’s rank on this indicator was much lower than that of Peru, which was ranked in the 35.4 percentile on this
category.
Bolivia was ranked in the 10.4 percentile on the regulatory quality parameter in 2022. Regulatory quality measures the
ability of the government to formulate and implement sound policies and regulations that permit and promote private
sector development. A low ranking indicates the inefficient implementation of policies and regulations for the private
sector. Bolivia was ranked much lower than Peru, which was ranked in the 59.9 percentile.
Bolivia was ranked in the 9.4 percentile on the rule of law parameter in 2022. The parameter measures the extent to
which agents have confidence in and abide by the rules of society, and in particular the quality of contract
enforcement, the police, and the courts, as well as the likelihood of crime and violence. Bolivia’s rank was lower than
Peru, which was ranked in the 32.5 percentile.
The country was ranked in the 20.8 percentile on the control of corruption parameter in 2021. The parameter measures
the extent to which elite and private interests exercise public power for private gain, including both petty and grand
forms of corruption, as well as appropriation of the state. Bolivia performed worse than Peru, which was ranked in the
22.2 percentile.
PEST Insights
Economic Landscape
Summary
Following the election of a socialist government in 2006, the Bolivian economy embarked upon nationalization of key
sectors in opposition to privatization policies followed by the previous government. The government nationalized the
hydrocarbon industry in 2006 and telecommunication sector in 2008. It nationalized the energy generation companies
in 2010 and electricity distribution system in 2012. Evo Morales signed a new banking law in December 2013, which
gives the government direct control over commercial interest rates. It also gives the state authority to fix quotas to
provide loans to certain economic groups or activities. However, President Morales’ nationalization drive was met with
criticism from pro-business opposition parties.
Mining and natural gas production are the chief sub-sectors within Bolivia’s industrial sector. Bolivia maintains low
import tariffs and is a member of the World Trade Organization (WTO) and an associate member of the MERCOSUR
trading bloc. In recent years, Bolivia has enjoyed a healthy trade surplus due to high international commodity prices.
The economy grew at an average growth rate of 5.0% during 2006–16. In 2009, the GDP growth rate decreased from
6.1% in 2008 to 3.4%. However, the economy recovered to 4.1% in 2010. The economic growth gathered further
momentum in 2011 as real GDP growth reached 5.2%. According to MarketLine, it fell to 5.5% in 2014 due to oil price
declines, and fell further to 4.9% and 4.3%, in 2015 and 2016, due to continued low commodity prices, coupled with
slow economic activity affecting its import partners. According to MarketLine, the economy grew by 4.22% in 2018,
compared to 4.20% in 2017. The small recovery was driven by an increase in the non-extractive labor-intensive
industries and an increase in domestic demand. According to MarketLine, the growth rate decreased to 2.2% in 2019
and contracted by 8.7% in 2020, due to fall in international and domestic demand amid the COVID-19 pandemic. The
economy successfully recovered and grew at an average annual rate of 4.8% in 2021 and 2022 because of rebound in
both the domestic and external demand.
Evolution
The following are some of the key events in Bolivia’s economic history:
• Bolivia experienced stable economic growth in the 1990s. The economic reform program was implemented in
1985 after the economy decelerated sharply due to endemic external debt and worldwide collapse in tin
prices. The reforms generated healthy growth in the following years.
• The adoption of the boliviano as the national currency in 1987, replacing the peso, stabilized the exchange rate
and subdued inflationary pressures. Interest rates were deregulated, import and investment permit
requirements were eliminated, and the government curbed the monopoly of Corporacion Minera de Bolivia
(COMIBOL), the state mining company, by opening the mining sector to foreign investment.
• Between 1993 and 1998, the economy expanded by an average of 4.7% annually. The services sector benefited
from privatization initiatives of the Lozada administration, implemented in the mid-1990s.
• Between 1999 and 2001, the economy grew at an average of just 1.5% annually, with low international metal
prices limiting the value of total export earnings. The economic meltdown was exacerbated by depreciation of
the Brazilian currency, the real, which stifled natural gas exports to Brazil. By 2001, investment and capacity
augmentation within the electricity sector were experiencing a downturn as well.
• Following the election of a socialist government in 2006, the Bolivian economy embarked upon nationalization
of key sectors in opposition to privatization policies followed by the previous government. The government
PEST Insights
nationalized the hydrocarbon industry in 2006 and the telecommunication sector in 2008. It nationalized the
energy generation companies in 2010 and followed this up with nationalization of the electricity distribution
system in 2012. In 2014, President Morales announced plans to construct the country’s first nuclear reactor. In
early March 2016, Bolivia and Russia signed a $300 million deal to build a nuclear research lab in El Alto. The
lab’s focus was on creating nuclear solutions in the areas of medical treatment and food safety and engaging in
other research with non-violent ends.
• According to MarketLine, Bolivia had the highest GDP growth rate in South America during 2013–16. Bolivia
maintained an average growth rate of 5.3% during 2013–16. In 2017, the economic growth slowed down to
4.19% and showed a slight recovery in 2018 by growing at 4.22%. The main reasons behind the small recovery
were increases in non-extractive labor-intensive industries and domestic demand.
• According to MarketLine, the economic growth rate slowed to 2.22% in 2019, following which it contracted by
8.7% in 2020, due to disruption caused by the COVID-19 containment measures and a sharp fall in global oil
and gas prices. Growth in Bolivia is supported by natural gas exports, and the decrease in demand from
Argentina and Brazil affected the Bolivian economy. Political instability also delayed the implementation of
policies needed to ease fiscal and external imbalances.
• According to MarketLine, the Bolivian economy bounced back and expanded by 6.1% in 2021. With reopening
of the economy, all the nation’s sectors recorded growth, compared to 2020. Bolivia’s natural gas and zinc
extraction services have been a particular boon during the country’s recovery as they registered increased
exports. In 2022, the economy recorded a growth rate of 3.5% due to the impact of the Russia Ukraine war,
and an overall slowdown in the global economy. Although there has been significant recovery and poverty
reduction post-pandemic, driven by eased restrictions and favorable commodity prices, however, challenges
loom, including high public debt, declining natural gas production, and foreign exchange pressures, leading to
an emerging parallel exchange rate.
Figure 6: Evolution of GDP (%), 2012–22
Source: MarketLine analysis based on information from the World Bank and the National Statistical Institute of Bolivia
PEST Insights

Financial system
Overview
The Bolivian financial system is controlled by the Central Bank of Bolivia (Banco Central de Bolivia [BCB]). The Bank is
responsible for the Bolivian economy's functioning and regulation, with several sub-committees supervising different
functions of the financial system.
Central Bank of Bolivia (BCB)

The BCB was formally established by Law 632 of 1928. The bank is headed by a board of directors consisting of a
chairman, a vice chairman, and four directors. The board is appointed by the president. The chairman and vice
chairman are appointed for a term of four years and eligible for re-appointment. The executive staff hold office for a
period of three years and are eligible for re-appointment. The governing body is the decision-making body of the bank,
which sets the monetary and exchange rate policies, and implements measures relating to the authorization,
regulation, and prudential supervision of credit institutions across the country. The bank is also responsible for the
country’s payment systems.
Performance
GDP and growth rate
Overview
According to MarketLine, the economy recorded a slowdown in 2019 to 2.2%, before contracting by 8.7% in 2020 due
to suspension of business activities and decline in global oil and gas prices. With the relaxation of COVID-19 restrictions,
the economy expanded by 6.1% in 2021. In 2022, the economy registered a growth rate of 3.5% as there was an overall
slowdown in the global economy. In 2023, the economy is forecast to grow by 2.0% due to the overall slowdown in
global economy and tightening of financial conditions. The nation remains susceptible to commodity price volatility,
global economic shifts, and climate-related disasters like droughts and El Niño in late 2023 and early 2024.
PEST Insights
Figure 7: Real GDP and GDP growth (constant prices), 2018–27f
Source: MarketLine analysis based on information from the World Bank and National Statistics Institute of Bolivia
GDP composition by sector

According to MarketLine, the services sector contributed 54.2% of GDP in 2022, followed by the industrial sector (31.0%
of GDP) and the agriculture sector (14.8% of GDP).
Figure 8: GDP by sector, 2022
PEST Insights
Agriculture
According to MarketLine, the agricultural sector recorded a growth rate of 4.7% in 2022 and is forecast to grow by 6.4%
in 2023.
The agricultural sector in Bolivia plays a crucial role in the country's economy, providing livelihoods for a significant
portion of the population and contributing to both domestic consumption and exports. Here is an overview of the
agricultural sector in Bolivia:
Crop Production: Bolivia's diverse climate and geography allow for the cultivation of various crops. Some of the major
crops grown in the country include corn, wheat, rice, soybeans, quinoa, potatoes, sugarcane, and coffee. Quinoa gained
international popularity due to its nutritional value and export demand.
Livestock: Livestock farming is an essential part of Bolivia's agricultural sector. Cattle, sheep, goats, and poultry are
among the primary livestock raised for meat, milk, and other products. The production of meat and dairy products is a
significant contributor to the country's agricultural output.
Exports: Bolivia exports a range of agricultural products, including soybeans, quinoa, coffee, and various fruits. The
country has been working to expand its export markets and improve the quality of its agricultural products to meet
international standards and increase competitiveness.
Coca Production: While not a legal agricultural activity, the cultivation of coca plants is prevalent in certain regions of
Bolivia. Coca leaves are used traditionally for chewing and in the production of coca-based products. The Bolivian
government has implemented policies to regulate and control coca cultivation to combat illegal drug production.
Government Policies: The Bolivian government has implemented various policies and programs to support the
agricultural sector, including subsidies, technical assistance, and credit facilities for small farmers. Land reform
initiatives are aimed to address historical land inequalities and improve access to land for indigenous and rural
communities.
Sustainability: There is growing interest in promoting sustainable and organic agriculture in Bolivia, particularly for
products like quinoa and coffee, which have gained popularity in international markets. Sustainable practices aim to
protect the environment, preserve biodiversity, and improve the livelihood of small-scale farmers.
In recent years, Bolivia has been working to modernize its agricultural sector and increase its competitiveness in global
markets while also addressing issues related to land rights and sustainability. The sector remains a vital component of
the country's economy and plays a significant role in providing employment and income for a large portion of the
population, particularly in rural areas.
The severe water shortage in Bolivia in August and September 2023, caused by a prolonged drought and climate
change-induced glacier melting, has had a detrimental impact on the agricultural sector. Farming communities and
livestock are grappling with reduced access to water for irrigation and animal consumption. Crops are failing, and
livestock is suffering due to scarcity of water. If the situation persists and worsens with the potential arrival of El Nino in
late 2023 and early 2024, the agricultural sector's challenges are likely to intensify, leading to food production
disruptions and economic hardships for rural communities.
PEST Insights
Figure 9: Agricultural output, 2018–23f
Note: Sectoral output is given in local currency due to foreign exchange fluctuations and their impact on
growth figures.
PEST Insights
Industry
According to MarketLine, the industrial sector recorded a growth rate of 7.9% in 2022 and is forecast to grow by 6.2% in
2023.
According to MarketLine, the construction and manufacturing sector recorded a growth rate of 4.7% and 3.6%,
respectively, in 2022. The sectors are forecast to grow by 5.9% and 6.1%, respectively, in 2023.
Bolivia’s industrial sector is relatively small but includes mining, manufacturing, energy production, and food
processing. Mining, particularly in minerals like lithium, is a significant component. Bolivia has been working to promote
domestic industrialization and diversify its industrial base. Challenges include infrastructure limitations and the need for
a skilled workforce. Bolivia has also been exploring renewable energy sources.
Figure 10: Industrial output, 2018–23f
growth figures.
Services
According to MarketLine, the services sector recorded a growth rate of 7.3% in 2022 and is forecast to grow by 6.3% in
2023.
According to MarketLine, financial intermediation, followed by transport, storage and communication, and wholesale,
retail trade and hotels recorded a growth rate of 5.3%, 10.1%, and 6.2%, respectively, in 2022. These three sectors are
forecast to grow by 6.0%, 6.4%, and 6.2%, respectively, in 2023.
Bolivia's services sector is diverse and vital to its economy, encompassing tourism, finance, telecommunications,
transportation, healthcare, education, hospitality, professional services, retail, and entertainment. While tourism
PEST Insights
benefits from natural attractions, sectors like finance, telecom, and transportation are growing. Healthcare and
education services are essential but face disparities, and the hospitality, retail, and entertainment industries contribute
to the sector's vibrancy. However, Bolivia's services sector also grapples with challenges such as infrastructure
development and urban-rural disparities, which can affect its stability and growth.
Figure 11: Services output, 2018–23f
growth figures.
Fiscal situation
Fiscal deficit/surplus situation
According to the IMF, the general government net lending was recorded at 7.3% of GDP in 2022. It is forecast to
decrease to 5.6% of GDP in 2023.
Current account
According to the IMF, the country had a current account deficit of 1.5% of GDP in 2022, which is expected to widen to
2.5% in 2023.
General government gross debt

According to the IMF, the country’s general government gross debt was recorded at 82.6% of GDP in 2022. The general
government gross debt is forecast to marginally decrease to 82.3% of GDP in 2023.
PEST Insights
Foreign trade
According to the International Trade Center (ITC), in 2022, Bolivia’s major export partners were India (16.5%), Brazil
(13.9%), Argentina (12.8%), Colombia (7.8%), and Japan (7.1%). Its major import partners in 2022 were China (19.4%),
Brazil (15.1%), Argentina (12.5%), Chile (10.9%), and the US (8.4%).
According to the IMF, the country’s volume of imports and exports of goods and services growth were recorded at
29.5% and 12.7%, respectively, in 2022. The volume of imports and exports of goods and services are forecast to
contract by 0.3% and 5.2%, respectively, in 2023.
Figure 12: Volume of export and import of goods and services growth, 2018–27f
Source: MarketLine analysis based on information from IMF April 2023 database
International investment position

Foreign investments
According to the United Nations Conference on Trade and Development, World Investment Report (2023), foreign
direct disinvestment was recorded at $26 million in 2022, compared to foreign direct investment of $584 million in
2021. FDI stock decreased from $10.6 billion in 2021 to $10.1 billion in 2022.
According to the United Nations Conference on Trade and Development, World Investment Report (2023), the value of
greenfield investments amounted to $72 million in 2022, compared to $224 million in 2021. The number of greenfield
projects in Bolivia were three in 2022, compared to seven in 2021.
PEST Insights
Figure 13: FDI inflows, 2017–22, and number of Greenfield investments, 2012–22
Source: MarketLine analysis based on information from UNCTAD, World Investment Report 2023
PEST Insights
Monetary situation
Overview
The BCB uses monetary policy to maintain price stability as defined in the monetary policy. The Central Bank adopts a
direct inflation targeting strategy to counter the effects of inflation.
Inflation
According to MarketLine, the inflation rate in Bolivia was recorded at 1.7% in 2022 and is forecast to increase to 2.9% in
2023.
According to the National Institute of Statistics of Bolivia, the inflation rate decreased for three consecutive months to
2.7% in July 2023, before rising to 3.1% in August 2023.
Figure 14: Consumer price index and CPI-based inflation, 2018–27f
Source: MarketLine analysis based on information from Central Bank of Bolivia and World Bank
PEST Insights
Employment
According to MarketLine, the unemployment rate was recorded at 4.4% in 2022. The unemployment rate is forecast to
marginally increase to 4.6% in 2023.
According to the National Institute of Statistics of Bolivia, the unemployment rate was recorded at 3.6% in Q1 2023,
compared to 3.2% in the previous quarter.
Figure 15: Unemployment rate, 2018–27f
Source: MarketLine analysis based on information from the National Institute of Statistics of Bolivia and World Bank
PEST Insights
Social Landscape
Summary
As of 2022, Bolivia had a population of approximately 12.2 million, with a median age of 25.9 years, indicating a
relatively youthful demographic. MarketLine data reveals that a significant 93.3% of Bolivia's population is below the
age of 65, underscoring the nation's youthful character. In terms of human development, according to the UNDP,
Human Development Index (2021–22), Bolivia was ranked 118th out of 191 countries, reflecting its standing in areas like
education, income, and healthcare.
When it comes to gender equality, the World Economic Forum, Global Gender Gap Index (2023) positioned Bolivia at
56th place out of 146 nations, indicating progress in narrowing gender disparities. However, in terms of press freedom,
Reporters Without Borders, World Press Freedom Index (2023), ranked Bolivia 117th out of 180 countries, suggesting
some challenges in terms of media freedom and access to information within the country.
Evolution
Recognizing the Bolivian government failure, social support groups looked for radical solutions to their political and
economic problems. In 1936, a group of military officers carried out a coup d’état and tried to institute a military
version of socialism. Standard Oil properties in Bolivia were nationalized and a social welfare-oriented constitution was
adopted. However, after the Bolivian National Revolution of 1952, social welfare programs were reduced. In Bolivia, the
roots of participatory democracy can be found in establishment of the Law of Popular Participation in 1994, a project of
Gonzalo Sánchez de Lozada, which shifted a small but significant portion of responsibility for public investment from
the central government to municipal governments and allocated 20% of national revenues to support localized control
and social welfare.
During 1996–2010, the Bolivian government operated a pension scheme based on obligatory worker savings with no
guaranteed benefit. The pension scheme was mandated by the structural adjustment policies imposed by the World
Bank and the IMF. Although the scheme was funded entirely by workers, who contributed 12.2% of their earnings, the
system offered few benefits, with many years of regular work required to achieve even the most nominal pension.
While around 1.3 million workers had established pension accounts under the old pension system by 2010, only 15% of
the workforce had adequate job stability to contribute on a regular basis. As a result, fewer than 30,000 workers
succeeded in retiring with a pension between 1998–2010. Furthermore, the informal sector workers, who constitute
60% of Bolivia’s economically active population, were excluded from the old pension system. The new system aims to
extend pension benefits to those working in the informal sector. According to the World Bank, Bolivia’s social reforms
during the last decade have reduced the poverty rate from 59% in 2005 to 39% in 2020, and the Gini index declined
from 49.2 in 2009 to 43.6 in 2020. In 2016, Bolivia approved the National Economic and Social Development Plan
(2016–20). The main objectives of the plan were to maintain high growth, reduce poverty, and improve access to basic
services. The plan main focus were on investment in infrastructure, hydrocarbon exploration, industrialization of
natural gas, and thermos and hydroelectric energy generation. In October 2021, the Economic and Social Development
Plan (2021–25) was approved by the Chamber of Deputies, which envisages investing $33.2 billion during the plan
period into the development of infrastructure and social sectors, including health and education.

Demographic composition
According to MarketLine, 63.6% of the population was in the 15–64 age group, as of 2022, reflecting a large workforce.
People aged 65 years and above made up 6.7% of the population and 29.7% of the population were in the 0–14 age
PEST Insights
group. According to MarketLine, the birth rate in Bolivia was 18.7 births per 1,000 people in 2022. The gender ratio
recorded in 2022 was 100.5 males per 100 females.
Table 2: Population by gender (as a percentage of total population), 2022
Age group Female Male

0–4 9.3 9.6
5–9 9.9 10.2
10–14 10.1 10.4
15–19 9.8 10.0
20–24 8.9 9.0
25–29 8.1 8.1
30–34 7.6 7.5
35–39 7.0 7.0
40–44 6.0 6.1
45–49 5.2 5.3
50–54 4.2 4.2
55–59 3.6 3.5
60–64 3.2 3.0
65–69 2.6 2.3
70–74 2.0 1.7
75–79 1.4 1.1
80+ 1.3 0.9

Source: MarketLine analysis based on information from United States Census Bureau
PEST Insights
Religious composition
Around 70% of the population is Roman Catholic, while Evangelicals constitute the second highest group at 14.5%.
Adventist, Church of Jesus Christ, Agnostic, and Atheist together constitute 4.8%. Others, none, and unspecified
account for up to 10.7%.
Figure 16: Religion composition, 2018 est.
Source: MarketLine analysis based on information from the CIA World Factbook
Education
System of education
The education system in Bolivia comprises a 5-year primary phase encompassing grades 1 to 5, succeeded by a 3-year
intermediate stage spanning grades 6 through 8, and culminating in a 4-year high school program. In the initial two
years of high school, all students adhere to a uniform curriculum. However, during the final two years of high school,
students have the option to specialize in either humanities or various technical disciplines to complete their graduation
requirements. A baccalaureate degree is conferred upon graduation, and it serves as a prerequisite for individuals
seeking to sit for the university entrance examination.
Social welfare policies

In 1996, the Bolivian parliament adopted a revised Agrarian Reform Law that allowed indigenous communities in the
eastern Amazon to gain legal ownership of their land. In 2006, the government extended the reform initiative for seven
more years, up to 2013. Thereafter, a nationwide program was launched in which all land was surveyed, demarcated,
and existing titles were verified and reissued. As a result of this program, indigenous communities hold 88 million acres
of titled land, which is more than double the amount controlled by them in 1992, according to the National Agrarian
Reform Institute (INRA).
PEST Insights
The government has also undertaken measures to alleviate extreme poverty by distributing economic surpluses from
state resources to the poor. In 2006, Bolivia adopted the Economic, Social, Communitarian and Productive Model under
the National Development Plan, under which it started to disburse social bonus schemes such as Juancito Pinto to help
students from public-sector schools, ‘Dignity Rent’ to help the elderly, and Juana Azurduy to support pregnant women
and their children for a span of two years.
In December 2010, the government amended the pension law, which resulted in nationalization of Bolivia’s private
pension funds. The new pension scheme guarantees universal retirement benefits and makes it easier for workers to
access them. It also reduced the pension retirement age to 58 for men and 55 for women. Under the scheme, employer
contributions to the pension fund will increase from 1.76% of salary payments to 4.76%. Under the new law, a worker
who has contributed for at least 10 years is entitled to a pension, while an average worker with 20 years of contribution
is entitled to receive 60% of the contributed amount. The amount increases to 70% after 30 years. The new system
seeks to extend pension benefits even to those working in the informal sector.
In 2015, the government transferred the individually funded accounts from the Pension Fund Managers
(Administradoras de Fondos de Pensiones (AFPs)) to the Public Management Body for Long-Term Social Security (the
Gestora). Gestora is a new agency that was created through an Executive Decree on January 14, 2015. Based on the
Executive Decree, Gestora has broader investment limits, compared to those the AFP had, and it must also maintain a
reserve fund to offset any loss. This is to ensure an increase in the rate of return on investments and guarantee a
minimum level of benefits.
To combat the negative impact of pandemic in 2020, the government introduced various measures. In May 2020,
families with children studying in public schools received direct relief payment of BOB504.32 ($73.0) per child, to cover
expenses for three months. This was later extended to private schools starting from May 18, 2020. The government
intended to deliver food to 1.5 million families and pay electricity bills for three months for consumers with lower
incomes. On April 21, 2020, President Anez and her cabinet (20 state ministers) decided to donate 50% of their monthly
salaries to a fund to help those affected by pandemic.
Healthcare
Healthcare services
Primarily, the Ministry of Health and Sports and the government-run health insurance funds, known as the Cajas de
Salud, deliver health services. Even as public health funding increased, Bolivian citizens have had to incur progressively
higher costs through user fees. The relatively small private sector located mainly in urban areas, provides services that
are unaffordable to the poor. The government is currently implementing a health reform program in collaboration with
multilateral donor organizations, such as the World Bank, to expand primary health services for women and children,
increase immunization facilities, and promote the participation of indigenous communities and NGOs in healthcare
delivery. The program promotes Extensa medical brigades, which are health teams that provide basic healthcare
services to communities every few months.
In Bolivia, the Single Health System (SUS) model, introduced in 2019, has significantly transformed the country's
healthcare landscape, according to World Health Organization (WHO). With WHO/PAHO's support, Bolivia provided
universal and free healthcare coverage to 50% of its population, protecting around five million underserved individuals.
As a result, health expenditure increased substantially, with an additional $200 million allocated in the first year of
implementation.
Primary healthcare services were strengthened, reducing out-of-pocket expenses for vulnerable communities. The
contribution of out-of-pocket expenditure to tertiary-level hospital budgets decreased from 65% in 2018 to 19% in
2020, according to WHO. The SUS model played a crucial role during the COVID-19 pandemic, ensuring uninterrupted
essential health services and enabling a prompt response to the crisis. Bolivia's healthcare model demonstrates
resilience and readiness for future health emergencies.
PEST Insights
Performance
Healthcare
According to MarketLine, the government health expenditure amounted to $3.8 billion (9.0% of GDP) in 2022, which
increased from $1.2 billion (5.2% of GDP) in 2011. The expenditure is forecast to increase to $4.1 billion (9.4% of GDP)
in 2023.
As of 2021, the total number of doctors per 1,000 people stood at 1.1, and the total number of nurses stood at 18,845
during the same year, according to MarketLine.
Figure 17: Total healthcare expenditure, 2018–27f
Source: MarketLine analysis based on information from World Bank
PEST Insights
Education
The literacy rate for the total population was 94.4% in 2022, according to MarketLine.
According to MarketLine, the public expenditure on education amounted to $3.9 billion in 2021, compared to $3.6
billion in the previous year.
Figure 18: Public education expenditure, 2011–21
Source: MarketLine analysis based on information from the United Nations Educational, Scientific and Cultural Organization
PEST Insights
Technological Landscape
Summary
The science and technology infrastructure in Bolivia is in a nascent stage, with the government focusing on economic
and social development. However, the country has made considerable efforts to implement technological transfer
through universities and letting exclusive R&D centres into the country. Currently, the country’s R&D focus is mainly on
the development of infrastructural technologies and technologies useful to enhancing gas and petroleum production.
The country is also being helped by the World Bank and China to develop its telecommunications infrastructure.
According to MarketLine, mobile penetration has increased from 70.2 subscriptions per 100 people in 2010 to 100.4 in
2022. In May 2023, Bolivia’s state operator Entel launched its 5G service.
According to UNCTAD, Technology and Innovation Report (2023), Bolivia ranked 101st out of 166 nations on the overall
indicator of utilizing frontier technologies. Frontier technologies refer to artificial intelligence (AI), the internet of things
(IoT), big data, blockchain, 5G, 3D printing, robotics, drones, gene editing, and nanotechnology.
Evolution
The first step toward scientific research and development was undertaken through establishment of the Bolivian
National Academy of Sciences in 1960. Notable scientific and technological research institutes and societies include the
Bolivian Geological Service and the Bolivian Petroleum Institute, both based in La Paz. In 1977, the National Council of
Scientific and Technological Development was established to implement science and technology policies. In 1991, the
National Council of Science and Technology was established. In 2011, the government approved the
Telecommunications, Information Technology and Communications Law, which authorized wiretapping for security
purposes and allocated two thirds of the electromagnetic spectrum to the Bolivian government. Furthermore, the law
prohibits licensing of radio broadcasts to foreign entities and limits the share of foreign investors in broadcasting
associations to 25%.
In 2018, the World Bank provided technological support to farmers of Bolivia through the National Institute for
Agricultural and Forestry Innovation (INIAF). The World Bank introduced the Innovation and Agricultural Services
Project for five years to boost agricultural production. The INIAF provided various technological methods for farming,
which included methods to prepare land and store water, use of seeds, and prevention of pests, diseases, and climate
impacts.
As of March 2023, Bolivia is making significant strides in its digital economy efforts, allocating $20 million to construct a
data center in El Alto. This center will securely store sensitive information, including driver's licenses, ID cards, and
property documents, as the government aims to digitize essential records. President Luis Arce views this as a milestone
for Bolivia's digitization, with plans to enable cloud storage of marriage certificates. According to MIT, a 10% increase in
digitization could integrate over 120,000 Bolivians into the formal labor market, despite the country's current internet
access limitations and relatively expensive internet services due to a telecom market dominated by Tigo and Entel.
In May 2023, Bolivia's President Luis Arce Catacora announced plans for the National Telecommunications Company
(ENTEL SA) to implement 5G technology in the country on the occasion of ENTEL's 15th anniversary. This move toward
5G technology will require a substantial investment to update and improve radio base stations. ENTEL SA has made
significant strides over the past 15 years, with over 6 million mobile telephony users, coverage in 20,100 localities, and
a robust optical fiber network spanning 33,200 km.
PEST Insights

Intellectual property
Servicio Nacional de Propiedad Intelectual (SNAPI) is the government agency that regulates intellectual property rights
in Bolivia. Bolivia received 38 patents from the US Patents and Trademark Office between 1979 and 2021. Bolivia was
granted only one patent from the US Patent and Trademark Office in 2021. Bolivia has been a member of the World
Intellectual Property Organization (WIPO) since 1993 and refers patent applications to WIPO for preliminary and
substantive searches and registration.
Research and development

Although the country’s scientific development had its roots in 1960, the first science and technology (S&T) policy
document was adopted during the 1990s. The specific objectives consisted of driving the development of scientific and
technological research, promoting increased human resources, supporting the development of new technologies,
creating scientific and technological services, improving the conditions needed to transfer technology through links
between universities and business, promoting regional and international cooperation and integration in science and
technology, and developing financial mechanisms for science, technology, and innovation.
Performance
Opportunity sectors
Telecommunications and internet
According to MarketLine, the number of mobile subscribers was 12.0 million in 2022. Mobile subscribers have grown at
an average rate of 3.6% during 2012–22. According to MarketLine, internet users reached 8.3 million in 2022, compared
to 3.7 million in 2012. Internet users have grown at an average rate of 9.8% during 2012–22. The total proportion of
internet users in the total population was recorded at 69.2% in 2022.
Figure 19: Internet users, 2018–23f
Source: MarketLine analysis based on information from International Telecommunication Union (ITU)
PEST Insights
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Key Facts and Geographic Location ...................................................................................................................................... 7

Social Landscape ................................................................................................................................................................. 27

Technological Landscape .................................................................................................................................................... 33

About MarketLine ............................................................................................................................................................... 35

Key developments (October 2022–September 2023)

Key economic updates

Inflation and interest rate:

Figure 1: Key economic indicators trend

Key Facts and Geographic Location

Internet domain .bo

Country area 1,098,581km2

Spanish (official) 68.1%, Quechua (official) 17.2%, Aymara (official)

Figure 2: Map of Bolivia, 2023

Source: MarketLine analysis

Structure and policies

Figure 4: Key political figures

Source: MarketLine analysis

Key political parties

Comminuty Citizen Alliance (ACC)

Figure 5: Composition of seats of the chamber of deputies, October 2021

Key economic and social policies

Foreign and defense policies

Figure 6: Evolution of GDP (%), 2012–22

Structure and policies

Central Bank of Bolivia (BCB)

Figure 7: Real GDP and GDP growth (constant prices), 2018–27f

GDP composition by sector

Figure 8: GDP by sector, 2022

Figure 9: Agricultural output, 2018–23f

Figure 10: Industrial output, 2018–23f

Figure 11: Services output, 2018–23f

General government gross debt

International investment position

Figure 14: Consumer price index and CPI-based inflation, 2018–27f

Figure 15: Unemployment rate, 2018–27f

Structure and policies

Table 2: Population by gender (as a percentage of total population), 2022

Age group Female Male

5–9 9.9 10.2

10–14 10.1 10.4

15–19 9.8 10.0

20–24 8.9 9.0

25–29 8.1 8.1

30–34 7.6 7.5

35–39 7.0 7.0

40–44 6.0 6.1

45–49 5.2 5.3

50–54 4.2 4.2

55–59 3.6 3.5

60–64 3.2 3.0

65–69 2.6 2.3

70–74 2.0 1.7

75–79 1.4 1.1

80+ 1.3 0.9

Figure 16: Religion composition, 2018 est.

Social welfare policies

Figure 17: Total healthcare expenditure, 2018–27f

Source: MarketLine analysis based on information from World Bank