With the institutional normalization reached by Bolivia, after the elections in which the candidate of the Movement for Socialism (MAS), Luis Arce, triumphed, the Argentine government is interested in rushing the agenda of full incorporation of the neighboring country to Mercosur. In the Palacio San Martín it is thought that 2021 could be the year in which the regional bloc could receive the new partner.
Bolivia's foreign public debt as of April 30, 2020, reached $11.62 billion. The Central Bank of Bolivia (BCB) reported that the debt reached 27.3% of the Gross Domestic Product (GDP). The government is going to negotiate with international creditors to suspend the payment of the foreign debt service until Bolivia recovers economically.
Bolivia will again be part of the United Nations Economic and Social Council (Ecosoc) by 2021. Previously Bolivia was part of this Economic and Social Council in the period 2013-2015. Ecosoc is the United Nations entity that coordinates the work of 14 specialized agencies, functional and regional commissions.
The November soy contract rose to $420.07 per ton, while the January position rose to $423.47 per ton according to information reported by the Rosario Stock Exchange. In Bolivia, exports of soybeans and derivatives in 2019 amounted to more than $700 million. In September 2020 it exceeded $560 million, 6% less than in the same period last year when it reached $604 million.
The Inter-American Development Bank (IDB) announced its intention to trigger investment of up to $50 billion for Latin America through a three-pillar plan: Capitalization: Increasing capital resources to finance projects in Latin America. Coordinate efforts: Increase the return and multiplier effect of investments by coordinating with the World Bank and the International Monetary Fund. Repatriation of investments from Asia: It expects that flows of between $30 and $50 billion can return.
CAF-Latin American Development Bank has allocated more than $2 billion this year to support SMEs in the region. It has defined a strategy to promote innovation, productive integration and internationalization of these companies to contribute to increased productivity and economic recovery.
Foreign direct investment in Latin America fell 25% year-on-year in the first six months of 2020, according to a United Nations report.
The latest report from the International Monetary Fund (IMF) brings good prospects for Bolivia in 2021. For next year, the agency expects the country to have a 5.6% growth in its Gross Domestic Product (GDP). Concerning 2020, the IMF forecasts that the national economy will contract by 7.9%. IMF improved the projection for Latin America and the Caribbean; it would fall of 8.1% for this year due to the impact of the coronavirus.
The Latin America and Caribbean (LAC) region could see an economic contraction of 8.1% in 2020 due to COVID-19 before entering a mild recovery” next year as the easing of lockdowns and adaptation by consumers and businesses help drive business activity, the International Monetary Fund (IMF) said. LAC countries expect to grow by 3.6% in 2021 as countries across the region emerge from deep recessions, but the speed and scale of the recovery will vary between states.
Exit polls suggest socialist candidate Luis Arce, an ally of former President Evo Morales, is set to win Bolivia's presidential election. Exit polls carried out by the Jubileo research institution gave Luis Arce of the Mas party 53% of the votes, followed by centrist candidate Carlos Mesa of the Citizens' Community alliance with 30.8%. A quick-count by pollsters Ciesmori suggested Mr Arce had won with 52.4%, trailed by Mr Mesa with 31.5%.