Economic Challenges: Bolivia Faces 19.7% Export Drop And Trade Deficit

(MENAFN- The Rio Times) Bolivia's foreign trade contracted sharply from January to August 2024, with exports plunging 19.7 percent and imports dropping 14 percent. The National Institute of Statistics (INE) released these concerning figures recently. Economists and the INE attribute this decline to a mix of adverse factors. Natural phenomena have affected productivity, while road blockades have disrupted transportation. International price volatility and a shortage of foreign currency have further strained the economy. Bolivian exports reached $6.02 billion in the first eight months of 2024. This figure is $1.48 billion lower than the same period in 2023. The nearly 20 percent decrease represents a significant reduction in foreign currency inflow. Gary Rodríguez, an economist and general manager of the Bolivian Institute of Foreign Trade, highlighted key factors. He pointed to price volatility in products like soybean seeds, bananas, natural gas, zinc, and gold. Rodríguez emphasized the impact of prolonged road blockades and the climate crisis on production. He noted that the adverse international context has also deeply affected exports. Imports paint an equally gloomy picture, falling from $7.44 billion in 2023 to $6.39 billion in 2024. The 14 percent reduction reflects the challenging economic landscape Bolivia currently faces. Economic Challenges: Bolivia Faces 19.7% Export Drop and Trade Deficit Dollar scarcity has played a central role in this decline, according to Rodríguez. It has made it difficult for businesses to access foreign currency for external purchases.

Bolivia's trade balance has suffered as a result of these challenge . The country accumulated a trade deficit of $378.6 million in the first eight months of 2024.

Luis Ballivián, an economist and former Central Bank official, commented on the trade deficit. He stated it highlights Bolivia's struggle to balance foreign trade amid uncertain global economic recovery. Ballivián agreed that road blockades and natural phenomena have significantly impacted exportable food production. He also noted the fall in international prices for key products like natural gas and minerals. The early termination of the natural gas export contract with Argentina poses another challenge. Ballivián warned this could reduce Bolivia's monthly income by $50 million. Despite overall difficulties, the mining sector showed slight growth. Mineral exports increased by 11.4 percent, reaching $1.96 billion by August. Experts agree that coordinated action between the government and private sector is urgently needed. Rodríguez and Ballivián called for promoting agroindustrial exports and removing competitiveness barriers.

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