Volatility caused by ongoing political and social unrest, as well as policy uncertainty, could delay the economic recovery. It could also delay the stabilization of LatAm banking systems’ Operating Environment (OE) scores, which capture the risk of doing banking business in a country or jurisdiction. In Fitch Ratings’ opinion, the OEs of Argentina, Bolivia, Costa Rica, El Salvador, Nicaragua and, to a lesser extent, Peru face more downside risks.
Bolivia's Cámara Agropecuaria del Oriente (CAO) warned that the drought will last until November.The business entity said that the drought period was brought forward by the heavy frosts that were recorded throughout the department of Santa Cruz and generated losses of $240 million in the agricultural sector.
Remittances from abroad in June reached $116.1 million and the first-half cumulative amounted to $687.7 million, a 50.6% growth compared to the first semester of 2020, says a Bolivian Central Bank (BCB) report. Remittances came mainly from Spain (35.1%), Chile (20.3%), the United States (20.3%), Argentina (5.5%) and Brazil (4.2%).
Forest fires this year have consumed more than 147,000 hectares (360,000 acres) in Santa Cruz department, the regional government reported. As in neighboring Brazil, the fires have been aggravated by widespread deforestation aimed at expanding farming or pasture land. Each year Bolivia confronts forest-fire outbreaks started by settlers in remote areas or by agribusinesses trying to expand their production. Bolivian NGO the Friends of Nature Foundation estimates that forest fires last year destroyed more than 2.3 million hectares of forests and grassland.
The state-owned oil company YPFB estimates annual revenues of between $120 and $140 million once the Ammonia and Urea Plant (PAU) reactivates fertilizer production. The plant's stoppage caused economic damage to the State, quantified at $291.19 million, related to lost profits, stoppage costs, repair of damaged equipment and lack of adequate maintenance.
Between 2014 and 2020, the volume of milk exports fell by 68%, basically due to the closure of the Colombian market. The drop in exports caused the accumulation of more than 3 thousand tons of milk powder in PIL in the PIL dairy company. Source: Los Tiempos
The level of Net International Reserves (NIR) is close to $4.7 billion and ensures up to six months of imports, officialized the President of the Central Bank of Bolivia (BCB).
The government delivered four headquarters to social sectors. The cost of the infrastructure exceeds 21 million bolivianos ($3 million), money came from the National General Treasury (TGN).
Last week, Yacimientos Petrolíferos Fiscales Bolivianos (YPFB) and the government highlighted increased gas exports from increased shipments to Argentina. However, revenues from natural gas sales fell by 3.5 per cent between April and May 2021 compared to a similar period in 2020.
According to government projections, the reactivation of the Ichilo-Mamoré waterway will require a budget of over $70 million and foresees starting work in July of this year.