Bolivia’s gas revenues have reduced by 58% from 2013 to 2019, according to data from the Ministry of Economy. En 2013, revenues reached $3.5billion while by 2019 the will be around $1.5billion. Economists identify several causes for the drop: from the fluctuation of oil prices to a fall in natural gas production and the reduction of the demand in the main export markets (Brazil and Argentina).
The Russian company Acron and Bolivian State-owned YPFB signed an agreement to sell natural gas and form a company for the commercialization of Urea in Brazil.
The agreement calls for the sale of 2.2 million cubic meters per day (MMmcd) of Bolivian natural gas to Acron from 2021, for a period of 20 years. The agreement also specifies the creation of a joint venture for the commercialization of urea of the Bulo Bulo (Bolivia) and Tres Lagunas (Brazil) plants.
The International Monetary Fund (IMF) lowered its forecast for Bolivian Gross Domestic Product (GDP) growth from 4% to 3.9%. Despite this adjustment, according to the Ministry of Economy, “Bolivia will have the highest growth in the region”. For this year, the Bolivian Government projected a GDP of 4.5%. The IMF also forecasted that Bolivia´s consumer price index (CPI) will end this year in 1.7% and the current account deficit will be of 5%.
José Luis Parada, the economic advisor of the Regional Government of Santa Cruz, said that the profits of Bolivian Fiscal Oilfields (YPFB) suffered a shocking drop due to the mismanagement of resources.
YPFB is worth almost half of Bolivia’s GDP and is in the opposition’s sights, warns Minister Sanchez
The state-owned Bolivian Fiscal Oilfields (YPFB), nationalised in 2006, is worth around 20 US billion dollars, equivalent to nearly half of Bolivia’s Gross Domestic Product (GDP), which closed at 40.581 US billion dollars in 2018. The programmes presented by the opposition candidates infer that YPFB may be privatised, warned the Minister of Hydrocarbons, Luis Alberto Sánchez.
President Evo Morales on Saturday asked the civic leaders of Potosí to prepare a better proposal to industrialise lithium, against the projects that the Government currently has as well as the recent offer from India to install a lithium factory in that department.
The World Bank (WB) published its latest biannual report “Latin America and the Caribbean: Trade integration as a path to development?” where it estimates a 3.9% Gross Domestic Product (GDP) growth for Bolivia as well as predicts slow growth for the region. According to the WB, the “disappointing” performance is partly due to the three largest economies in the region experiencing challenging times. In fact, Argentina is in an economic crisis, Brazil is coming out of recession and Mexico is suffering from an economic slowdown. According to the BM projections, Bolivia will present the highest level of growth, followed by Colombia with 3.3%; Chile 2.5%, Brazil 0.9%, while Argentina has a decrease of -3.1% as does Ecuador -0.1% of its GDP.
After three years, the expansion of the airport is expected to become a reality. $280 million investment is estimated. The announcement of the winning company, which will be responsible for executing the work, will be made this Monday.
Perspectives: 2019 is a grey year for the production sector. Crop yields, such as wheat and soybeans, fell 40%. As a result, the producers ran out of funds.
According to data from the Ministry of Culture and Tourism, Bolivia generates 850 million US dollars annually in revenue; a growth three times more than recorded in any other Latin American countries. This implies that Bolivia is growing at an annual rate of 9.8% in tourism.