Day: Mar 19, 2020

Foreign investment falls $160 million in Bolivia

Bolivia closed 2019 with negative Foreign Direct Investment (FDI) of $160 million, a scenario that has not occurred for 14 years (2005). Bolivia pointed a higher outflow of capital, due to the withdrawal of money in payment of dividends, according to the report of the Bolivian Institute of Foreign Trade (IBCE) with figures from the Central Bank of Bolivia. Economists suggest that legal security and labour flexibility improve the situation.

Texas oil price closes at $20.37 a barrel and affects revenues in Bolivia

In New York, the WTI (Texas) barrel for delivery in April ended at $20.37, a drop of 24.4%. The North Sea Brent for delivery in May fell 9.9% to $25.86 a barrel. Given this scenario, Bolivia is affected by the perception of income, which is distributed to the governments, municipalities, universities, the National Treasury and various national funds, since the sale price of Bolivian gas is indexed to the cost of WTI barrel. The effect will have greater visibility in the third quarter of the 2020 administration.

Economic growth in Bolivia lowers its forecast to 2.5%

The National Chamber of Commerce (CNC) lowered the growth forecast of the Bolivian economy for this year, from 3.5% to between 2% and 2.5%, due to the global economic recession caused by the effects of the Covid-19, which affects the prices of raw materials. It anticipates that inflation will increase above 3%, higher than in 2019, which reached 1.47%.

Losses in tourism and hostelry are estimated at more than $1 bn

Given the decisions taken by the government to deal with the coronavirus, tourism estimated losses of $400 million and hoteliers estimate between $400 and $800 million nationally. The sector requested immediate attention on four points: debt rescheduling, which would imply the suspension of capital payment while the restrictive measures last; rescheduling of national and municipal taxes and patents; labour adjustment: partial payment of salaries; and clarity in the regulations issued by the government.

Coronavirus economic measures will inject $1.68 bn into the economy

Through Supreme Decree 4197, the Bolivian Government provides for a 30% reduction in monthly billing for April 2020, in electricity rates for consumers in the household category, as a result of the declaration of a national health emergency and quarantine for Coronavirus (COVID-19). In the same Decree, the payment of the Bs 500 ($71.8) Family Bonus was established, which will be paid only once in April.

Bolivian Government Reduces Electricity Rates by 30% in April

Through Supreme Decree 4197, the Bolivian Government provides for a 30% reduction in monthly billing for April 2020, in electricity rates for consumers in the household category, as a result of the declaration of a national health emergency and quarantine for Coronavirus (COVID-19). In the same Decree, the payment of the Bs 500 ($71.8) Family Bonus was established, which will be paid only once in April.