Fitch Ratings Confirms Bolivia’s Economic Outlook ‘Negative’
The October 14 report mentions that foreign currency reserves are $ 1,100 million in September and have reached $ 7,800 million, and that the breakdown had been higher if it had not been quoted by the price of the government and the administration. by the Central Bank of Bolivia from private funds.
Reserves, however, largely covered net foreign imports and liabilities, but have fallen as a result of the decline in medians as part of the Gross Domestic Product (GDP) of 18), creating vulnerability to domestic shocks.
Gas export volumes have fallen sharply in 2019 (-22% in July) due to the reduction in demand from Brazil and Argentina. The recovery is uncertain due to the expiration of the supply contract with Brazil (December 2019) and exchange rates on the commercial agreement with Argentina.
In addition, Fitch forecasts a breakdown in gas and mining production and a certain slowdown in credit growth to drag real GDP growth to 3.6% in 2019 from 4.2% in 2018. “The lack of publication of any given GDP just now, by 2019, is clouding the visibility of economic behavior, ”notes the entity.