In 2020 savings in Bolivia's financial system rose by 10 per cent to $29.19 billion. In 2019 the figure was $26.52 billion, and in January this year, the figure fell to $28.86 billion. The increase in savings means lower consumption and a decrease in the economy.
The mobile wallet has a balance of 26 million bolivianos ($3.7 mn), and the Government reactivated the application for the purchase of products made in Bolivia and to support domestic companies.
The Covid-19 pandemic has amplified the financial needs of Latin American countries to cope with the health emergency. It has generated an increase in the region's debt levels from 68.9% to 79.3% of Gross Domestic Product (GDP) between 2019 and 2020, making Latin America and the Caribbean the most indebted area in the developing world. A new report by the Economic Commission for Latin America and the Caribbean (ECLAC) reveals that the health contingency has magnified Latin America's structural gaps and put its resilience at risk.
According to data from the Ministry of Hydrocarbons, gas production, the main export product to Argentina and Brazil, contracted up to 17%, while liquids (gasoline and diesel) production fell to 13% in 2020. Given this, the state-owned Yacimientos Petrolíferos Fiscales Bolivianos (YPFB) informed that during the 2021-2022 period, it would implement an exploration plan that includes the execution of 20 projects, reaching an investment of $400 million.
Fuel imports grow again this year after registering a 41.7% drop in 2020. In January 2021, the value of imports grew by $94.3 million in gasoline and diesel. YPFB announced the construction of the renewable diesel plant until 2024 with an investment of $250 million, a project to reduce imports of this fuel and the subsidy.
In 2020, Bolivia's mining income decreased by 69% due to the negative impact on extractive activity caused by the Covid-19 pandemic. Revenue from mineral exploitation decreased from $587 million, in 2019, to $182 million last year.