Category: Macroeconomy/Finance

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

Bank deposits fell from 65 to 61% of Bolivia's GDP

Bolivia’s bank deposits dropped from 65% of the GDP in 2018 to 61% in 2019, while loans grew from 62% to 64% of the GDP, according to the Industry and Commerce Chamber of Santa Cruz (CAINCO). According to the government, bank deposits reached up to November 2019 $25.4 billion while loans were $26.5 billion.

Pension funds reached $19 billion

Deputy Minister of Pensions and Financial Services Osvaldo Jáuregui reported that the pension system funds administered by the AFPs reached $19 billion. The Government also announced that will end permanently the $10.9 million contract with Colombia’s Heinsohn Business Technology, which was hired to design software for the state-owned Long Term Social Security management company.

Bolivia ends 2019 with the highest fiscal deficit in 17 years

Bolivia will end 2019 with the highest fiscal deficit in 17 years, at 9% of the Gross Domestic Product (GDP), according to the Commerce and Industry Chamber of Santa Cruz (CAINCO). A fall on tax collection and state incomes are the main reasons for the deficit. According to the Jubilee Foundation, hydrocarbon revenues fell by 18% while tax collections reduced by 3.5%.

Bolivia expects hopes to guarantee $5 billion income from gas sales to Brazil

Bolivia could keep open the Brazilian market for Bolivian natural gas for the next 3 or four years. The contract with Brazil should finish at the end of this year. The Hydrocarbons Minister, Victor Hugo Zamora, said that they expect to signed an addendum to the contract in the next 70 days that will define the shipments to the gas still not taken by Brazil (around 12 months) and also it guarantees an income of around $5 billion for Bolivia.