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Bolivia's biggest city and the world's ninth biggest soybean producer, Santa Cruz, produces a total GDP of USD8.4 billion and accounts for a quarter of the country's total GDP. However, due to large dependency on natural resources and lack of higher value- added sectors, Santa Cruz faces incredibly low productivity levels (USD6,000 GVA per employee) and low annual disposable income per household of USD13,100.
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Santa Cruz lags considerably behind other major Latin American metropolises in terms of economic efficiency. In 2016, GVA produced per employee was just USD6,000, much lower than nearby major cities such as Santiago (USD34,000) and São Paulo (USD23,900). Nationally, its labour productivity was 25% above the rest of the country's. Santa Cruz's lead over other parts of the country is related to its advantageous geographic position, which made it one of the most important trade centres in Bolivia, and transportation infrastructure.
In 2016, disposable income per household in the city was 94% higher than in the rest of the country. Higher household income in Santa Cruz is boosted on the back of food processing and extractive industries (mainly located in Santa Cruz), which offer the best wage rates in the country.
Greater household incomes result in the city's average per household spending level (excluding housing and transport) exceeding the average for the rest of Bolivia by 77% in 2016. Food and non-alcoholic beverages is the largest budget category, claiming 26% of total spending in Santa Cruz in 2016.
Santa Cruz features higher spending on housing, at 97% more than in the rest of the country, while its transport costs were as much as 83% higher than in the rest of Bolivia. Combined housing and transport costs per household exceed the average for the rest of the country by 88% in 2016.
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