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Andean Group - August 2011 (ISSN 1741-4466)

ECONOMIC OVERVIEW: BOLIVIA

GDP growth: According to Bolivia’s central bank (BCB), GDP grew 5.7% in the first quarter of 2011. The BCB is forecasting GDP growth of between 5% and 6% for 2011 (rising to between 5.5% and 6.5% in 2012). This is above the 4.7% regional average for 2011 forecast by the UN Economic Commission for Latin America and the Caribbean (Eclac) and Bolivia’s growth rate of 4.1% for 2010.
  The BCB cites as growth drivers for the first quarter non extractive sectors such as electricity, gas and water (8.9%), construction (8.2%), and transport & communications (7.6%) as well as non renewable extractive activities such as hydrocarbons, which grew 15%. 
Inflation: The consumer price index (CPI) for the first six months of 2011 increased 4.3%, bringing the inter-annual rate to 11.3% although as of March, the rate was evening out. The sectors to see the highest increases were alcoholic drinks and tobacco (11.3%), restaurants and hotels (7.1%), goods and services (6.4%) and health (6.2%). Five of the nine regional capitals registered inflation rates higher than the national average: Cobija (Pando), (7.7%), Tarija, (6.2%), Potosí, (5.5%), Oruro (5.5%) and La Paz (4.7%

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