Friday, January 15, 2010

Facts you need to know about the Bolivian Economy

Despite all the horror stories you read on the media about Bolivia’s economic outlook. Bolivia has the most positive macroeconomic variables in its history between 2006 and 2009 that placed it as the country with the highest growth in Latin America 3.7%, with the highest level in increasing Net International Reserves (RIN), 8580 million dollars and with an evolution of the Gross Domestic Product (GDP) historical since the 70s of 6.15% in 2008, among the most remarkable data.

In the Monetary Policy Report of the Central Bank of Bolivia (BCB) released Monday (1/11/10) by the president of the BCB, Gabriel Loza, highlighting the most important macroeconomic indicators of the four years of the first term of President Evo Morales, who were described as positive despite the historic international financial crisis.

An important chapter is the Net International Reserves until 2009 reached 8580 million dollars, the highest level in history in Bolivia. This amount represents 50.1% of GDP and represents the highest percentage among the countries of Latin America.

Also noted is the behavior of the inflation rate in 2009 stood at 0.26%, the lowest in the past 50 years.

“As never before in economic history were recorded fiscal surpluses in four consecutive years, resulting from higher revenues coming from the nationalization of the oil industry and proper fiscal management.“ says the report of the BCB.

The National Budget surpluses from 2006 to2008 reached record highs in Bolivian history. While 2009, ended with a surplus of 2.5% despite the international crisis.

For the first time in the history of Bolivia, in 2008 the International Investment Position (IIP) registered a positive balance of 12.6% of GDP and up to September 2009 the balance is of a positive 16%.

The National Debt presented significant reduction coming from the initiatives for debt relief and fiscal surpluses in recent years. The balance of National debt of mid and long term to December 2009 represents 15% of GDP, well below the numbers in 2003 of 63% of GDP.

The public deposits in the national banking system at the end of 2009 represent more than double the deposit in late 2005. Between 2005 and 2009, deposits grew by 130% while between 2001 and 2005 deposits decreased by 9%.

In 2010 the national economic growth is projected to be in the range 4.5% - 5.5% as a result of the realization of public investment projects in oil, mining and infrastructure, in the framework of the economic program for the next presidency, concludes the Monetary Policy Report of the Central Bank of Bolivia (BCB).

We hope this in depth information about the Bolivian economy; will help you clarify a lot of the noise you normally read on the media about Bolivia.

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