Brazil’s requirements rose to 14 million cubic metres of gas, a situation which, from the perspective of the hydrocarbons minister, augurs well for Bolivia’s revenue recovery. The arrival of winter would also determine an increase in gas demand from Argentina. According to reports from the Bolivian Institute of Foreign Trade (IBCE), in the first quarter, natural gas exports represented 33% of total exports, for an amount of $664 million.
Due to the quarantine, the implementation of teleworking and Tele-education, internet consumption in Bolivia increased by 40%, but new users do not even reach 10%. The telephone companies have more than 10 million users, between 80% and 85% are post-paid customers, and the rest opt for prepaid, especially in consumption by cell phone. Because of the quarantine, several post-paid users have been owing bills since January, so the companies are suffering from severe illiquidity, which forced the operators to suspend their investments to improve the service.
The Government has made more than 7,105,921 million bond payments, reaching a large part of the 8.3 million beneficiaries. The breakdown of disbursements is as follows: 1,744,763 from the Renta Dignidad bond; 931,525 from the Bono Canasta Familiar; 2,433,489 from the Bono Familia and 1,906,891 from the Bono Universal.
Two months after the quarantine, 40% of the 115 formal farms operating in Santa Cruz decided to close due to the sharp drop in demand for pork, which also caused the price of the live kilo to fall to Bs 10.5. Forty-five thousand pigs remained in the production centres of Santa Cruz, a region that supplies 80% of the animal protein in the whole country.
The Center of Studies for Labor and Agricultural Development (CEDLA) anticipates that this year industry and manufacturing, construction, tourism, hotels, mining and hydrocarbons and public administration, will be the economic activities that will generate more unemployment due to the sharp contraction they will experience during 2020. The informal sector will continue to be the cushion of the employment crisis. The National Chamber of Commerce estimates an increase of 200,000 unemployed.
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.
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.
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%.
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 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.