According to the National Statistics Institute (INE) Gross Domestic Product (GDP) in 2011, preliminary data showed growth of 3.76%. This behavior is explained by the positive changes in several activities such as:
• Metallic and Non Metallic Minerals 4.07%
• Crude Oil and Natural Gas 4.78%
• Financial Institutions, Insurance, Real, Real Business Services Provided to 4.37%
• Manufacturing 7.06%
• Trade 5.97%
• Electricity, Gas and Water 4.33%
• Agriculture, Livestock, Forestry, Hunting and Fishing 2.26%
• Storage and Transport and communications 3.25%
• Public Services 2.98%
• 2.31% Restaurants and Hotels
• Construction 0.19% and
• Other Services 6.75%.
The major economic movement was recorded in the manufacturing sector, this increase is mainly due to the demand of the external sector of domestic raw materials that increase the exports of these commodities. On the other hand, the sector of Crude Oil and Natural Gas increased due to increased demand of the latter from neighboring countries.
According to preliminary data from the INE, 2012, the retail sector in Cochabamba have a growth rate of 9.38% compared to 2011, national accounts for 24%, the third largest market for commercial operations behind Bolivia La Paz and Santa Cruz respectively.
Trading activity for the region is significant because, first, to be the center of the country Cochabamba, enables delivery of goods with comparative advantage to the rest of the nation and on the other, is in the flow of goods between the east and the Bolivian altiplano.
Trade is active and is favored by the communication by land, rail and air to neighboring departments: the rail and intermodal transport connection with the Eastern Red allows the connection with Brazil and Argentina via the town of Santa Cruz. The Red West, which connects our department with Peru, Chile and Argentina, with an intermodal land, as well as air links.
According to preliminary data from the INE, 2012, the industrial sector in Cochabamba present a growth rate of 5.54% compared to 2011. Manufacturing in Cochabamba with the Agricultural and Commercial sectors represents 51% of economic activity department.
Cochabamba industry, no doubt, is characterized by its versatility and its focus on production processes, this capability has allowed the increasing integration of businesses Cochabamba in national and international markets, offering products with high added value and export quality competitive prices, resulting from proper use of their comparative advantages given through the abundance of relatively cheap labor and easily qualifying for his innate manual dexterity, abundant natural resources and perseverance of the entrepreneur that makes it capable of achieving the goals ambitious business improvement.
The items most representative of the Regional Industry are:
• poultry industry, whose production capacity has led her to take the lead of the domestic market in recent years making inroads into new markets.
• The food industry
• The soft drinks industry and alcohol
• The textile industry, apparel and leather
• The timber industry and its manufacturing
• The engineering industry
• Industry and plastic manufacturing
According to data from the INE, the service sector, by 2012, achieve a growth of 5.69% compared to 2011. The department services industry was initially created to support the industry, then became important and currently offers services of all kinds that cater to various needs of the people of Cochabamba that is constantly growing.
SMEs and MSEs
The manufacturing sector is engaged in leather work, metal, wood products, charts, food and beverages. The trade sector has 12,909 establishments, they account for 58% of MSEs. This sector employs 16,751 people representing 41.4% of total jobs in the city of Cochabamba. The province has 22,258 Fencing micro enterprises.
In the service sector establishments with 6748 representing 30% of companies and employs 16,215 people, representing 40.10%, and carry out activities dedicated to the hospitality, food service, automotive services and repairs, professional services, domestic services.