Category: Macroeconomy/Finance

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

Cochabamba’s GDP was 15% of Bolivia’s GDP in 2019

In 2019, the Gross Domestic Product (GDP) of Cochabamba reached 6.22 billion dollars, representing 15% of the national GDP. According to information from the Bolivian Institute of Foreign Trade (IBCE), the exports of the department of Cochabamba are concentrated mainly in natural gas and forms of raw gold, but also a diversity of non-traditional exports such as the well-known bananas from the Chapare. In comparison, its foreign purchases are mainly of transportation equipment.

In four years, foreign direct investment in hydrocarbons fell by 82.09%

According to the latest report from the Milenio Foundation, one of the main reasons for the deterioration in hydrocarbon production in the country is the low foreign investment in this sector. From 2014 to 2019, investments in the industry fell by 82.09%. In 2019 the external capital resources that arrived in the country were $242 million, 0.6% of the GDP. Attracting investment is one of the most backward areas in the country, with regulations and institutions that provide little incentive for private and mainly foreign investment.

China is Bolivia’s main bilateral creditor with $1.04 billion

China is Bolivia’s main bilateral creditor, and the pre-pandemic debt balance was $1.04 billion, just below international organizations such as the Inter-American Development Bank (IDB) and CAF-Latin American Development Bank. Bolivia’s close relationship with China is also a trade issue. According to data from the Bolivian Institute of Foreign Trade (IBCE), as of July 2020, Bolivia exhibits a negative trade balance of $734 million with the Asian country. The main exported products are minerals, wood and beef; so far this year, about $141 million in products were exported, and $875 million in Chinese articles imported.

French Development Agency lends €100 mn to Bolivia

Bolivia will allocate 100 million Euros granted by the French Development Agency (AFD) to finance bonds and the family basket for the benefit of the most vulnerable families and those affected by the health crisis of Covid-19. The French cooperation also donated 1 million dollars for the purchase of apheresis material in the Blood Banks of Tarija and Santa Cruz, as well as PCR tests.

Fiscal deficit reached $2.87 mn as of June due to falling in revenues

The government informed this Tuesday that the fiscal deficit for the first semester of 2020 reached Bs 20. billion ($2.87 bn). The deficit increased considerably as a result of the quarantine, established by the COVID-19, which caused a significant reduction in the State’s income, since economic activities paralyzed, although they later reactivated, but with limitations.