EACC Bolivia

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2. BAcKgRoUnd on BoliviA
thE gEnERAl contExt
location
Bolivia is a landlocked country located in the heart of
South America. It borders on Brazil, Peru, Argentina,
Chile, and Paraguay.s
demography
Bolivia currently has about 10.4 million inhabitants,
with an annual growth rate of 2.7 percent. The country
covers a large land area, with a population density of
only 10 people per square kilometer, the lowest in the
entire continent. Around 40 percent of the population
lives in rural areas. The largest city is Santa Cruz, with
a population of just over 1.7 million.
Economy
The annual per capita income (GDP per capita) is
US$1,363 (2007) which makes Bolivia the poorest
country in Latin America. According to the last population
census (2001), some two thirds of the population
live in poverty, and the remaining third in ‘extreme’
poverty.
tABlE 3. BoliviA: KEy Economic indicAtoRs, 2007
Indicator Unit 2007
gross domestic product (current prices) Us$ million 13,395
growth (1) percentage 4.56
Accumulated inflation percentage 11.73
Exchange Rate national currency to Us$ 7.90
Average Annual fluctuation in Exchange Rate percentage (4.28)
Unemployment percentage 5.18
current Account Balance Us$ million 1,758
External debt Us$ million 2,183
gross fixed capital formation Us$ million 2,162
private consumption Us$ million 8,469
public consumption Us$ million 1,883
per capita gdp Us$ 1,363
Sources: Latin American Integration Association; International Monetary Fund; National Institute of Statistics; Bolivian Central Bank.