The General State Budget (PGE) for 2021 has a consolidated amount of Bs 216,501.2 million ($31.06 bn). It also foresees a 4.2% growth in the Gross Domestic Product (GDP) based on the price of the barrel of oil at $37.21. Infrastructure will have an investment of 3.44 billion.
The Ministry of Economy yesterday guaranteed 10% for the health sector and affirmed that it leaves 17 billion bolivianos ($2.44 bn) in the State coffers for the next government to face the closing of this year, although the amounts include external credits such as that of the International Monetary Fund (IMF). Health will have its 10% and Education 11%, we are guaranteeing it in the General State Budget 2021. The regulation, drafted by the current transition government, must be approved by the Legislative Assembly in the next few days.
The Bolivian economy will fall this year by -7.3%, according to recent forecasts by the outgoing government, an indicator lower than the -11% registered in the first half of this year and thus the country can have a better profile in Latin America. The measures to subsidize and support the economic reactivation managed to improve the adverse climate generated by the coronavirus pandemic, which managed to paralyze the global economy during the first six months of this year.
The increase in the price of soy flour, one of the main inputs for poultry farmers, is the reason why they have chosen to stop producing and generate a lower supply, which leads to a 23% increase in its price for the producer.
The pandemic caused a 29% drop in domestic exports, from January to September, compared to a similar period in 2019, resulting in a $2 billion reduction.
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.
Up to September, according to data from the National Institute of Statistics (INE), fuel purchases, especially liquid ones, fell by up to 60.9% compared to the same period in 2019, with acquisitions reaching $451.8 million. Bolivia is a large importer of liquid fuels, and during the month of September, the country registered problems with the supply of diesel, the most affected region being Santa Cruz.
The Bolivian Chamber of Construction (Caboco) states that construction is in a strong recession and that the projection of figures is critical. To date, only 28% of companies in the sector have updated their registrations, 250,000 jobs have lost and the accumulated debt of more than Bs 2 billion ($286.9 mn) of the State with construction companies for the last year persists. It foresees a contraction of 18% of the construction sector.
According to data from the Financial System Supervisory Authority (ASFI), the liquidity of the financial system reached Bs 54.7 billion ($7.85 bn). The figure represents a growth of 5.99%, concerning the same period in 2010.
Hydrocarbon exports fell by 41% and mineral exports by 23% year-on-year between January and September 2020. Other sectors that registered a drastic fall in this period were textile apparel with a 64% drop, jewellery -37%, leather -36% and chestnuts -23%. Beef exports tripled their sales with a growth of 219%, followed by the export of sunflower and derivatives with 46%, cocoa with 28%, coffee 18% and milk 18% growth.