page_title: La Paz
section_title: Economy
hierarchical_section_title: La Paz / Economy
caption_attribution_description: Español: Edificio del Banco Central de Bolivia, La Paz, Bolivia. Esperanto: Oficejo de la Banko Centrala de Bolivio en La Pazo
context_page_description: La Paz, officially known as Nuestra Señora de La Paz, also named Chuqi Yapu in Aymara, is the seat of government of the Plurinational State of Bolivia. With an estimated 816,044 residents as of 2020, La Paz is the third-most populous city in Bolivia. Its metropolitan area, which is formed by La Paz, El Alto, Achocalla, Viacha, and Mecapaca makes up the second most populous urban area in Bolivia, with a population of 1.8 million, after Santa Cruz de la Sierra with a population of 2.3 million. It is also the capital of the La Paz Department.
  The city, located in west-central Bolivia 68 km southeast of Lake Titicaca, is set in a canyon created by the Choqueyapu River. It is located in a bowl-like depression surrounded by the high mountains of the Altiplano. Overlooking the city is the towering, triple-peaked Illimani. Its peaks are always snow-covered and can be seen from many parts of the city. At an elevation of roughly 3,650 m above sea level, La Paz is the highest capital city in the world. Due to its altitude, La Paz has an unusual subtropical highland climate, with rainy summers and dry winters.
context_section_description: The economy of La Paz has improved greatly in recent years, mainly as a result of improved political stability. Due to the long period of high inflation and economic struggle faced by Bolivians in the 1980s and early 1990s, a large informal economy developed. Evidence of this is provided by the markets found all around the city. 
  While there are stable markets, almost every street in the downtown area and surrounding neighborhoods has at least one vendor on it.
  La Paz remains the principal center of manufacturing enterprises that produce finished-product goods for the country, with about two-thirds of Bolivia's manufacturing located nearby. 
  Historically, industry in Bolivia has been dominated by mineral processing and the preparation of agricultural products. However, in the urban centre of La Paz, small plants carry out a large portion of the industry. Food, tobacco products, clothing, various consumer goods, building materials, and agricultural tools are produced. "The tin quotations from London are watched in La Paz with close interest as an index of the country's prosperity; a third of the national revenue and more than half of the total customs in 1925 were derived from tin; in short, that humble but indispensable metal is the hub around which Bolivia's economic life revolves.  The tin deposits of Bolivia, second largest in the world, ... invite development."
caption: Central Bank building
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