Page Seven / La Paz
The Bolivian economy will close the year with a growth close to 6%, with a fiscal deficit that fell to 4.9% in October and is lower than projected and with exports of more than 10 billion dollars, reported the Minister of Economy, Marcelo Montenegro.
“We will be growing in this administration (2021) very close to 6% and the sectors that have boosted this important growth are manufacturing, construction, transportation, mining, which have been the most dynamic, among many others,” he said. the authority in a 2021 economy assessment report.
According to the authority, 2021 was that of reconstruction and the beginning of the recovery of the Bolivian economy.
For this year in the General State Budget (PGE) the Government estimated a growth of 4.8%, but in March the Ministry of Economy and the Central Bank of Bolivia (BCB) adjusted the goal of economic growth down to 4 , 4% in the Monetary Fiscal Program.
You can also read: 6th addendum for gas sales with Argentina delayed
In the first half of this year, the economy grew by 9.4%, which implies a greater production of goods and services in the country, compared to the 12.9% drop in the same period in 2020.
Montenegro explained that the Future Situation Index that is built from the expectations and reports sent to the BCB by economic agents shows a good scenario in 2022. “This Index went from 17.6% in February of this year to 38.5 % in November and shows that most of the surveyed economic agents foresee that the situation in 2022 will be much better than the current one, in such a way that there are prospects for economic improvement, productive activity, income, employment ” , highlighted Minister Montenegro.
The PGE 2022 projects a GDP expansion of 5.1%, inflation of 3.4% and a fiscal deficit of 8% and a public investment of 5.015 million dollars.
Fiscal deficit and exports
For this year a fiscal deficit of 9.7% was projected, but as of October this indicator stands at 4.9% of GDP. “Public finances are balanced. We can say that we are reducing the fiscal deficit that last year was in double digits, now we are reducing it to one digit ”, he stressed.
You can also read: Customs brokers estimate that exports will close at US $ 10,500 million
He clarified that this indicator occurs due to public investment that is a non-recurring component and that it will pay off in the future in an increase in productive capacity.
He anticipated that exports will exceed 10 billion dollars, since as of October of this management they already reached 8,926 million dollars, an increase of 65% compared to 2020.
While imports will close with an approximate of more than 8,000 million dollars. Purchases grew from 5,650 million to 7,424 million dollars as of October. “This is configuring that the economy is recovering, given that many raw materials, inputs and capital goods are also imported, which are key for production,” he said.
Indicators on the rise
Forecast • The IMF projected growth of 5% this year for Bolivia and the World Bank 5.5% and ECLAC 5.1%.
Billing •The Ministry of Economy, reported that a sign of improvement in the economy is the sale of restaurants that reached 383 million dollars in October, 39% more than a year ago. However, this level does not reach the 694 million dollars of turnover that this sector had in 2019.
CPI • Inflation as of November of this year is controlled with an index of 0.7%.
Job • The urban open unemployment rate as of October fell to 5.2%.
