Bolivia Country Snapshot


EIU

Bolivia - Economist Intelligence Unit - The Economist

DOMESTIC POLITICS: The ruling Movimiento al Socialismo (MAS) will further consolidate its power in December elections and entrench its populist-socialist agenda during the outlook period, although bureaucratic inefficiencies, corruption, political polarisation and a lack of investment will limit the success of its efforts to grow the economy, redistribute wealth and reduce poverty. The MAS will remain reliant on the personality of the president, Evo Morales, who has maintained broad support and should easily win re-election during the first-round of voting on December 6th. The opposition remains split and although the two main candidates are popular in eastern departments (their main support base), they will struggle at the national level. The failure to unite around a single platform or party and an inability to compete with the vast campaign resources now controlled by the MAS--which include an expanding state-run media and millions of dollars worth of public investments and handouts--mean they are set to lose their Senate majority (removing their current ability to veto legislation) and will remain largely restricted to regional strongholds through most of the outlook period.

Country Forecast Overview (3 Year)
Key Indicators 2008 2009 2010
Real GDP Growth (%) 4.22 1.50 1.30
Consumer Price Inflation (av;%) 14.01 3.50 4.00
Budget Balance (% of GDP) 3.24 -2.00 -1.80
Current-Account Balance (% of GDP) 12.13 4.10 4.10
Exchange Rate US$:Euro (av) 7.26 7.07 7.08
Exchange Rate US$:Euro(year-end) 7.07 7.07 7.12

Bolivia GDP PPP & GDP Growth Rates
2004 - 2008
Bolivia GDP Growth Rate Chart

Year GDP in Billions of USD PPP % GDP Growth
2004 31.71 2.21
2005 34.54 2.57
2006 37.35 2.81
2007 40.18 2.66
2008 43.56 4.22
Source: EIU Country Data

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