La Paz, a department in Bolivia, leads the nation in savings and is a significant contributor to the national economy, providing 28% of Bolivia’s Gross Domestic Product (GDP), as indicated by a recent report.
This report, formulated with data from the National Statistics Institute (INE), identifies La Paz’s prominence in the national financial system, with savings accounting for 55% of the country’s total.
La Paz residents have shown a distinctive savings propensity, increasing deposits by 9% in the past year, even amidst nationwide deposit reductions influenced by foreign currency withdrawals.
As of May 2023, the banking system in La Paz has issued credits totaling US$7.036 billion, making up 26% of the national total, second only to the Santa Cruz department.
The same report also recognizes La Paz’s contribution to the loan sector, showing a 5.7% growth in the past year, especially in microcredit.
The department, having the largest business base in Bolivia with over 115,000 active companies, reached a nominal GDP of US$11.269 billion in 2021.
The INE’s Continuous Employment Survey indicates that trade and manufacturing were the predominant economic activities in La Paz as of the first quarter of 2023.
Moreover, in 2022, La Paz attracted 27% of Bolivia’s incoming tourism.