We estimate that weak domestic activity will combine with a souring external environment and contribute to a real GDP contraction of about 3.5% this year, and expect growth to recover to about 2.9% in 2021. The economic recession will weaken public finances and widen the fiscal deficit to nearly 13% of GDP this year, while, lower hydrocarbon exports will drive the country’s current account deficit to 4.5% of GDP by year-end. As Bolivia’s fiscal and external accounts deteriorate, its fiscal savings and foreign exchange reserve buffers will erode, further diminishing two key pillars of strength in the sovereign’s credit profile. New administration will face rising political, liquidity and exchange rate risks.
Silver Sand is located in approximately 25 kilometres northeast of the renowned Cerro Rico silver and base metal mineral system near Potosi, Bolivia. According to the report, the deposit contains 35.4 million tons in the measured and indicated category grading at 137 grams per ton silver for a total of 155.9 million ounces of silver. The project also has 9.8 million tons at 112 grams per ton silver for 35.6 million ounces in the inferred category. Nearly 70% of the resources are found within 200 metres of the conceptual open pit surface.
Despite the signing of an interruptible contract between YPFB and Petrobras for the month of May, the volume of exports remains below 14 million cubic meters per day (MMm3d) contemplated in the 8th addendum. Compared to the 21 MMm3d projected in the State’s General Budget (PGE), sales are equivalent to only 50%.
About 10 million people in the country have internet access, but only 5% have unlimited internet access, which is the basis for teleworking, Tele-education and the digital economy. 95% of the population has access to the internet from their mobile phones, which is not enough for these jobs. Only 2% carry out banking transactions online. Only 85% of the companies dedicated to commerce have a web page, and 92% of the companies do not have an internet network
Poverty in Bolivia will increase by at least 2.1% as a result of the coronavirus crisis, while extreme poverty will increase by 1.7%, according to ECLAC projections.
Two months after the quarantine, only three out of 10 cargo trucks are operating in Bolivia. The International Transport Association (Asociaatrin) points out that due to the quarantine there is a lower volume of transport in key sectors such as soy derivatives, mining, and construction. Marcelo Cruz, president of Asociatrin, indicated that in the oilseed sector the volume of cargo contracted by 50%.
According to Bolivia’s Financial Authority (ASFI), bank profits fell by up to 11% from $66.2 million in the first quarter of 2019 to $58.7 million in the same period in 2020. According to the Association of Banks of Bolivia (Asoban) the health of the banks is stable, despite the fall. Asoban’s executive director, Nelson Villalobos, said that until April 2020 deposits registered an annual growth of 7.2 %. As for the loan portfolio, it grew 4.9%
The DAC Fund: Dialogue and Collaborative Support, is an initiative of the Swiss Cooperation that focuses on NGOs, which can submit proposals to promote ideas related to economic development, governance, climate change and environment, as well as the fight against Covid-19.
The paralysis of the economy, the slow reactivation and the lack of closing of the financial statements of the companies, force the business sector to request a deferment of the payment of the Profit Tax, which is fulfilled this May 29, until October or at least to delay 60 days. The National Chamber of Commerce (CNC-Bolivia) and the National Chamber of Industries (CNI), in a joint statement, said that due to the paralysis of most economic activities during the quarantine, companies have been unable to generate sufficient income to meet their obligations.
From January to March of this year, the Bolivian economy has been slowing down to grow only 0.55%, according to the Global Index of Economic Activity (IGAE). The economic activities that affected the low growth were mining, construction, transportation and storage, other industries and financial services. The other sectors registered an expansion, although below 5%.