ABA projects insurance payout could reach $139.2 mn in 2021 due to COVID-19

Up to 31 December 2020, insurance paid out (claims) amounted to $62.5 million, according to the Bolivian Association of Insurers (ABA). By 2021, this figure could rise to $139.2 million. The ABA estimates that the entire estimated increase of almost $77 million is equivalent to a 124% increase in claims incurred, mainly attributed to the extraordinary COVID-19 deaths.

Construction registers 2.5% NPL ratio and state debt reaches $291.18 mn

The construction sector recorded an NPL ratio of 2.5% between January and November 2020. In this period, the sector reported a fall of 8.17% due to the low execution of public investment, according to data from the Bolivian Chamber of Construction (Caboco).The decline in the construction sector is also related to state debts to companies in the industry, which amount to at least BS.2 billion ($291.18 million) nationwide.

ECLAC projects Bolivia to grow 5.1% in 2021

Bolivia is among the three economies that will register the highest GDP growth in 2021, according to projections by the Economic Commission for Latin America and the Caribbean (ECLAC). In 2020, the institution projected a 7.7% drop for the region, and by 2021 it expects an average regional growth of 3.7%, led by Peru (9%), Panama (5.5%) and Bolivia (5.1%).