We estimate that weak domestic activity will combine with a souring external environment and contribute to a real GDP contraction of about 3.5% this year, and expect growth to recover to about 2.9% in 2021. The economic recession will weaken public finances and widen the fiscal deficit to nearly 13% of GDP this year, while, lower hydrocarbon exports will drive the country’s current account deficit to 4.5% of GDP by year-end. As Bolivia’s fiscal and external accounts deteriorate, its fiscal savings and foreign exchange reserve buffers will erode, further diminishing two key pillars of strength in the sovereign’s credit profile. New administration will face rising political, liquidity and exchange rate risks.
Day: May 27, 2020
New Pacific Metals files technical report on Silver Sand project in Bolivia
Silver Sand is located in approximately 25 kilometres northeast of the renowned Cerro Rico silver and base metal mineral system near Potosi, Bolivia. According to the report, the deposit contains 35.4 million tons in the measured and indicated category grading at 137 grams per ton silver for a total of 155.9 million ounces of silver. The project also has 9.8 million tons at 112 grams per ton silver for 35.6 million ounces in the inferred category. Nearly 70% of the resources are found within 200 metres of the conceptual open pit surface.
Bolivia exports gas to Brazil for 50% projected in the General State Budget
Despite the signing of an interruptible contract between YPFB and Petrobras for the month of May, the volume of exports remains below 14 million cubic meters per day (MMm3d) contemplated in the 8th addendum. Compared to the 21 MMm3d projected in the State's General Budget (PGE), sales are equivalent to only 50%.
E-commerce in Bolivia reaches only 10%
About 10 million people in the country have internet access, but only 5% have unlimited internet access, which is the basis for teleworking, Tele-education and the digital economy. 95% of the population has access to the internet from their mobile phones, which is not enough for these jobs. Only 2% carry out banking transactions online. Only 85% of the companies dedicated to commerce have a web page, and 92% of the companies do not have an internet network
Poverty will increase in Bolivia by 2.1% according to ECLAC
Poverty in Bolivia will increase by at least 2.1% as a result of the coronavirus crisis, while extreme poverty will increase by 1.7%, according to ECLAC projections.
