Bolivia is a small open economy located in the heart of Latin America, in-between the Andes and the Amazon. It borders with Brazil, Paraguay, Argentina, Chile and Peru. Bolivia has free trade zones (FTZs) in El Alto (the Department of La Paz), Santa Cruz, and Cochabamba. Bolivia is a resource rich country with strong growth attributed to captive markets for natural gas exports. For the four year period from 2012 through 2015 Bolivia’s economy grew at an average yearly rate of 5.6%. This compares favorably to the 4.7% average yearly growth experienced from 2008 through 2011. The 2015 increase in GDP is a result of a 9.4% growth in public services; 6.3% growth in electricity water and gas distribution, 6% growth in financial services; 5.1% growth in agriculture and 4.6% growth in manufacturing.
Bolivia is attractive for foreign investors due to:
– The presence of non-renewable natural resources
– The steady economic growth
– The current and exected growth of the agriculture sector
– The governments desire to promote Foreign Direct Investment