After oil revenues fell by 29.6% in 2020, the government expects to reach $1.92 trillion in revenues in 2021 due to a more significant increase in gas production, better oil and natural gas prices, and higher exports to Brazil and Argentina.
Bolivian gas exports to Argentina grew by 19.10% during the first quarter of 2021 compared to the same period in 2020, according to official information from Yacimientos Petrolíferos Fiscales Bolivianos (YPFB).
Natural gas exports between January and March 2021 reached a value of $490.9 million, equivalent to a 22.1 per cent decrease compared to a similar period in 2020 when revenues reached $630.5 million.
Public investment increased by 47% ($185 million) concerning the same period in 2020 ($74 million), with infrastructure investment growing by 148.8% in this period, highlighting the reactivation of highway projects such as El Espino-Charagua-Boyuibe, the Cochabamba metropolitan train, the double-track central section El Sillar and the rehabilitation of the Santa Cruz-Trinidad highway.
Due to the overflowing of several rivers in the Chaparé region, 2,500 of the 7,000 hectares of banana crops were affected. This figure represents 35 per cent. The economic damage to producers exceeds $600,000.
Yacimientos Petrolíferos Fiscales Bolivianos (YPFB) retoma las negociaciones para exportar urea y encara la recta final de reactivación de la planta, que demandará 53 millones de dólares. La planta estará funcionando el segundo semestre de este año, periodo en el que también estima exportar urea granulada por 80 millones de dólares. YPFB resumes negotiations to export urea for $80 mn.
The government's priority is to reach 94.6% national coverage in the electricity sector this year, mainly with projects in rural areas. The National Electrification Company (ENDE) has a budget of Bs 4,63 billion ($664.56 mn) to undertake investments.
As part of the grace period, the rescheduled outstanding portfolio of financial institutions increased to $1.37 billion, which implies a 64% growth between February 2020 and February 2021.
Health and death insurance sales increased by 11 and 14 per cent in 2020 due to the Covid-19 pandemic; however, insurers must perform greater control during the sale of policies in the face of increased risk. Life insurance sales represent 49 per cent of the total insurance business.
Bolivia loses approximately $2.3 billion annually as a result of smuggling. This effect has repercussions throughout the production chain, causing companies to see a drop in sales of between 30 and 40 per cent, endangering hundreds of jobs and the stability of the national industry's operations.