Category: Macroeconomy/Finance

Information regarding Bolivia’s productive sector and the country’s macroeconomy.

Alcohol exports increase by 29%

Amid an adverse context, alcohol exports increased 29% in value and 25% in volume, according to figures from the National Institute of Statistics (INE). Until May, external sales reached $22 million. For this year the industries foresee to produce 180 million litres.

0.14% inflation in July

July registered inflation of 0.14% mainly due to the increase of prices in the health (2.43%) and transportation (1.19%) divisions, informed the National Statistics Institute (INE). With such variation, the accumulated rate in seven months reaches 0.92%, and annualized inflation is 1.35%. The rise has moderate behaviour and is in line with the budgets of the Monetary Program that establishes a rate of 3.4% for 2020.

INE reports economic growth of 0.6% in the first quarter

The National Institute of Statistics (INE) presented the report of national economic performance, among which stands outgrowth of 0.6% of Gross Domestic Product (GDP) to the first quarter of 2020. The Economic Commission for Latin America and the Caribbean (ECLAC) warned yesterday that countries dependent on mining, gas (which includes Bolivia) and oil exports had a substantial drop of 25.8%. The report points out that international trade in Latin America and the Caribbean could fall 23% in 2020 due to the impact of the coronavirus pandemic, which will also cause a decline in imports from the region.

The National Chamber of Commerce says losses could reach $3 bn this year

The national economy is going through a hard time due to the pandemic and social conflicts. A slowdown in economic growth observed, reaching 2.2% in 2019. The fiscal deficit that same year was 7.2% of the GDP and the trade balance closed with a shortage of 3.3%. Reserves decreased from 51% of the GDP in 2012 to 16% of the GDP in 2019 ($6.47 billion). External debt increased by 26% of the GDP. The National Institute of Statistics reports that unemployment as of June 2020 rose to 9.6%, from 4.8% at the end of 2019. The National Chamber of Commerce (CNC) announced that losses, from all sectors, could reach $3 billion by the end of the year.

YPFB loses $5.34 million per month with eighth gas sale addendum with Petrobras

After the signing of the eighth addendum to the natural gas purchase agreement signed between YPFB and Petrobras, the Bolivian state oil company had stopped receiving monthly payments of $5.34 million for transporting the energy between the Rio Grande and Puerto Suarez (Mutun), on the border with Brazil, a cost that before the signing of the new agreement was paid by the Brazilian oil company. In 142 days, from March 11 to July 31, the Bolivian state oil company has already lost $25.3 million. Until the end of the year, the economic impact would be about $52.5 million.

Loan rescheduling in the banking sector increased by 51.2%

According to data from the Financial System Regulatory Authority (ASFI), as of May this year, the financial system was reprogrammed with Bs 5.8 billion ($834 mn), almost double the amount readjusted in 2019. The growth occurs in challenging context due to the health emergency that the country is experiencing due to the coronavirus pandemic, in which the Legislative Assembly approved bill 720/2019 for the automatic deferral of credit payments to banks until December 31 this year.