The Ministry of Productive Development and Plural Economy (MDPyEP) will invest 754 million bolivianos ($108.17 mn) in strategic projects executed by public companies this year.
Category: Macroeconomy/Finance
Information regarding Bolivia’s productive sector and the country’s macroeconomy.
SIN will audit more to achieve $3.7 bn in revenues
In 2021 the National Tax Service (SIN) aims to collect 25.81 billion Bolivianos ($3.7 bn) with more audits, legal actions and an increase in taxpayers. The goal was signed in an agreement within the national government and asked sub-national governments to assist in the task.
Domestic debt rose by 60.4% in one year
Between 2019 and 2020, domestic debt rose by 60.4%, from 44.28 billion bolivianos ($6.35 bn) to 71.039 billion bolivianos (at $10.19 bn). The largest creditors of the TGN are the BCB (55%) and the AFPs (42%). The composition of the domestic debt in this way represents serious risks for the future of the economy. In 2021 there are better prospects for revenues than in 2020, but it will be necessary to restrict spending.
59,722 ha of crops were lost due to La Niña
La Niña phenomenon causes Bolivia to lose 59,722 hectares of crops, of which the most affected are quinoa and potato crops, which may affect supply and price behaviour.
Gross investment falls by 65.9% to $121 mn in 2020
Foreign direct investment (FDI) in 2020 (data as of the third quarter) reached US$121 million, which represents a 65.9% drop compared to 2019 figures, according to data from the Central Bank of Bolivia (BCB). The stoppage of activities explains the decline due to the pandemic.
Bolivia’s credit rating outlook downgraded from stable to negative
The US agency S&P Global Ratings changed Bolivia's risk rating outlook from stable to negative. The assessment based on the fall of the Gross Domestic Product (GDP), the increase of external indebtedness and the high fiscal deficit. Although this is a change in the outlook for the time being, the international agency does not rule out lowering its risk rating in the next 6 to 18 months.
Resignation of CAF president may limit lending to Bolivia
The resignation of the Development Bank of Latin America (CAF) executive president, Luis Carranza Ugarte, a year ahead of schedule due to political pressure from Argentina, may harm Bolivia, such as limited access to credit.
Exports to the U.S. fall by 34%
In 2020, exports of domestic products to the United States fell by 34 per cent compared to last year. In 2020, Bolivian sales to the United States totalled 296 million dollars; in 2019, the country had exported 435 million, and in 2018 had shipped an amount of 504 million.
The pandemic has reduced by 85% of the profits of the industrial sector
2020 was a black year for the economy. During the pandemic, the profits of the industrial sector fell by 85%. In the document called "The impact of Covid-19 on companies in Bolivia", the National Chamber of Industries (CNI) states that 70,000 jobs lost due to the health emergency.
More than 690,000 people affected by quarantine in the country
Some 698,000 people (unemployed and inactive population) were affected by the quarantine in Bolivia. According to the Continuous Employment Survey (ECE) of the INE (National Institute of Statistics). Of this figure, 53.3% are women, and 46.7% are men. In the age group, according to the surveys, people from 18 to 23 years old who lost their jobs are 41,000, and the inactive is 98,000.
