The three levels of government carry debts for months and even years to the construction companies, for a global amount that until July reaches 2.5 billion bolivianos ($ 359 mn).
The declaration of public calamity, which was issued by the Government through a supreme decree, will allow it access to economic resources of up to 2.1 billion bolivianos ($301.7 mn), an amount that represents 1% of the General State Budget (PGE) 2020, as established by the Political Constitution.
The creation of the new tax regime SIETE-RG, which seeks to encourage entrepreneurs with the payment of a single bi-monthly tax equivalent to 5 per cent of gross sales, can benefit approximately 180 thousand micro and small businesses nationwide. However, this amount represents only 30 per cent of this sector. Decree 4298 promotes the creation of new companies through this tax system to support entrepreneurship and also establishes other tax incentives aimed at economic reactivation.
Waldo Ramos Jurado, the financial auditor and former executive of the hotel sector in La Paz, is the new executive president of the National Customs Service (AN). He replaces Jorge Hugo Lozada, who resigned a few days ago.
The national government has secured a fund of Bs 300 million ($43 mn) for the advance payment of the Renta Dignidad bonus. The necessary resources are available to comply with the benefit, which can be collected since August and will reach more than 870,000 senior citizens in the national territory.
The quarantine did not change the dynamism of the demand maintained in food and medicine, not so in other areas of the economy, which has left a good part of the country’s productive apparatus in a lousy way, 20% of the formal active enterprises are at risk of becoming inactive. International organizations project that the national economy will close with a figure of -5.9% of GDP in 2020 and a recovery that will not exceed 2.5% by 2021.
Pandemic will accentuate inequality in Latin America, where the fortunes of the rich have grown by nearly $50 billion
The coronavirus pandemic will increase the number of poor and unemployed people in Latin America, but it is also expanding the region’s most enormous fortunes, according to a report released Monday by the humanitarian organization Oxfam. 73 Latin America’s billionaires increased their wealth by $48.2 billion when COVID-19 took hold in the region. The other side of that coin also shows that since last March, there are 52 million people who will return to poverty in the area, along with another 40 million who will join the ranks of the unemployed.
In May 2020, external sales of ethyl alcohol grew by 29% in value and 25% in volume, compared to the same period of the previous administration, according to a report by the Bolivian Institute of Foreign Trade (IBCE) with data from the National Institute of Statistics (INE). The value of ethyl alcohol exports amounted to 22 million dollars, while the volume was 37 thousand tons.
The Labour Market Statistics report as of June from the National Institute of Statistics (INE) reflects a recovery in economic activities in the country. Compared to May, the inactive population is said to have fallen from 433,000 to 407,000 in June. According to the report, the unemployment rate was 9.6% in June.
This year a 7.8% drop in construction activity is projected due to the economic crisis caused by the coronavirus pandemic. The data of the General Index of Economic Activity (IGAE) accumulated until April already show the effects of the quarantine and a fall of the global index of the whole economy of 5.6% observed in comparison with the same period in 2019. According to this, construction activity drop by 19.16%.