The country’s public external debt grew by 3.2% from January to April of this administration; while net international reserves fell by the same percentage on July 3, according to data from the Central Bank of Bolivia (BCB). The Inter-American Development Bank (IDB) is the largest creditor in 2020 with $3.37 billion, followed by CAF with $2.62 billion and the World Bank with 960.4 million. Bilateral creditors show China as the main creditor with $1.031 billion, France with $285.8 million, Germany with 65.6 million and South Korea with $45.8 million.
Business people in Chuquisaca doubt the projection of the Economic Commission for Latin America and the Caribbean (ECLAC), which predicted a 5% drop in Bolivia’s Gross Domestic Product (GDP). Essential sectors in the production chain such as the construction sector paralyzed despite the efforts of the Government to create jobs in this area and recalled that tourism paralyzed.
The Government launched this Thursday the so-called “credit 1, 2, 3”, for entrepreneurs and individual entrepreneurs, with the interest of 3%, and $120 million. A natural person can apply for credits of between Bs 1,000 ($143.67) and Bs 64,000 ($9,195), micro-entrepreneurs and business people can get up to Bs 350,000 ($50,287.36). The resources come from the reduction of legal reserve limits of financial entities and could allow liquidity of Bs 3,500 million ($502.87 mn).
The Economic Commission for Latin America and the Caribbean (ECLAC) forecasts that extreme poverty in the country will reach 16.8% of the population, according to data from the National Institute of Statistics, last year the indicator stood at 12.9%. By the end of the year, about 453,000 more Bolivians will have fallen into extreme poverty.
The national government and the Santa Cruz Chamber of Construction (Cadecocruz), signed this Thursday an inter-institutional agreement to generate a minimum of 11 thousand jobs that will be subsidized by the State through a loan from the Inter-American Development Bank (IDB). The objective is to intermediate and generate employment opportunities in the next three to six months with a budget of at least $us. 19 million.
The recovery period of the oil and gas sector both in Bolivia and globally will be at least one year, during which time the demand for transport will return to normal after the coronavirus pandemic. Despite this trend, Bolivia has a still complex scenario, as in 2020 it will have a drop in its gas sales revenue of approximately 40%, and in 2021 it will have a lower production capacity.
The construction of the seven airports demanded more than $112 million. Also, it estimates that more than Bs 1 billion ($143.68 mn) invested in equipment. They locate in Ixiamas, Chimoré, Copacabana, Apolo, San Ignacio de Velasco, Monteagudo and Oruro. In the last two years, they generated administrative and maintenance expenses of Bs 5 million ($718,390, for administrative and service costs of airport terminals that registered minimal or no operations.
Bolivia’s unemployment rate rose to 8.1% in May of this year, an increase of about 3.6% from late 2019, when it was 4.8%, according to the National Institute of Statistics (INE). It is equivalent to 122,000 people who would lose a source of employment due to the Covid-19 pandemic.
37.2% of Bolivians suffer from poverty, and 12.9% from extreme poverty, according to updated data released today by the National Institute of Statistics (INE). The entity updated the data on the basic food basket and the poverty and extreme poverty lines after 30 years. The figures show that the number of poor people in both urban and rural areas has increased in the last four years.
The Economic Commission for Latin America and the Caribbean (ECLAC) lowered on Wednesday its forecast for the contraction of the Bolivian Gross Domestic Product (GDP) to 5.2% for the current administration. In April, the organization predicted a reduction of 3%. The coronavirus pandemic is not entirely under control in Latin America and the Caribbean, so ECLAC warned that it would lead the regional GDP to contract a historic 9.1% in 2020, a situation that will raise the unemployment rate to 13.5%.