In June 2020, the Consumer Price Index (CPI) registered a positive percentage variation of 0.36% regarding May. The accumulated difference to June was positive by 0.78%, and to twelve months it reached 1.44%, according to information from the National Statistics Institute (INE).
As of May, bank deposits grew by $1.5 billion; loans are close to $400 million. Interest rates remain the same as in 2019. It shows people’s confidence in the financial system.
Bolivian imports fell by 36% in value and 38% in volume from January to May this year, compared to the same period in 2019. Imports in the first five months registered $2.65 billion, the lowest amount in the last ten years. Exports reached $2.59 Billion, 24% less than the same period in 2019. The volume decreased by 36%, according to IBCE.
The national economy registered negative inflation in December 2019, in January, February and in May 2020
The national economy registered negative inflation in December 2019 and in January and February 2020, with prices recovering in March and April, but again falling in May, and starting to rise in June. Since November 2019, the country experiences political uncertainty, a slowdown in the economy, which foresees a recession of 5.9% of the gross domestic product by 2020.
On June 30, the Gestora Pública, which administers Bolivian’s pension funds, filed a criminal complaint against former Economy Minister Luis Arce for the million-dollar purchase of non-existent software from the company Sysde and for a contract for other software with Heinsohn, which included the rental of its use for 40 years.
The airline’s financial statements as of December 31, 2019, reflect a loss of $28 million, another $10 million was charged directly to the Accrual Account, with a combined effect of $40 million of decrease in the company’s equity. With the pandemic, the situation is more critical; the company has stopped receiving $60 million.