Daily Archives: May 11, 2015

Bolivian gov’s mirage is fading! Sales drop in value and volume – Falling income, economic boom gone! – Trade deficit!

El Diario reports: First bimonthly 2015:

Sales drop 27% in value and 6% by volume

Screen Shot 2015-05-07 at 10.57.56 AMBolivian exports to February 2015 show a general reduction in values and volumes exported. Likewise the average export prices have been continuously deteriorating, explained by less favorable external economic conditions. In the opinion of the Chamber of Exporters of Santa Cruz (Cadex), the prevailing feeling of immunity of the Bolivian economy seems to be diluted given the results of exports to the first two months of 2015. In that sense urges to promote public policies to promote and facilitate Non-traditional exports, he said. COMMODITIES As of February 2015, the value of exports fell by 27%; analogously volumes by 6.6%; and the average export price by 22% as compared to the same month of the previous year. Exports of hydrocarbons and minerals have a plunge in their values and average export price is equivalent to the fall in international prices of oil and minerals, explained by the crisis in Europe, Japan and the lower demand for minerals and other commodities from China. NON-TRADITIONAL Regarding non-traditional production, Cadex obsrves a considerable drop in their values shrink by 26% and volumes almost 25%. This is due to the temporary nature of exports of the oilseed and sugar complex as well as export restrictions, he says. http://www.eldiario.net/noticias/2015/2015_05/nt150505/economia.php?n=17&-ventas-caen-27-en-valor-y-6-en-volumen [On top of the above, follows another shocking but revealing news, that exposes current Bolivian government’s incompetence!] El Diario also reports: Evaluation of Jubileo Foundation:

Falling income and economic boom ends

Screen Shot 2015-05-07 at 11.23.53 AMThe public sector payroll soared this year. The decline in revenue has an impact on revenues. The budget envisages a deficit of 4.1 percent of GDP by 2015. While the Jubileo Foundation recommended that the Government prevent the growth of current expenditure (salaries), the former Minister of Finance, David Blanco, said the first thing the Executive power should do is to reverse the fiscal deficit of 3.2 percent thatthe economy closed with in 2014. But on the contrary, this year the deficit will increase to 4.1 percent (adjusted) as a proportion of GDP, which is not registered in the last eight years in office. Jubileo researcher Rene Martinez, said the government inexplicably incurred in deficit in 2014, when last year it had not yet been noticed the decline in commodity prices in the international market. ROUTINE Jubileo insisted that the government does not go into debt in times of economic contraction and avoid fiscal deficit and, conversely, to better plan their operating expenses in recent years soared, especially in the area of the payroll of salaries and wages They reached its peak: Bs31,951 million, as set aside for the 2015 budget. WORRISOME During the presentation of the study “Budget at the end of the boom and the need for fiscal pact,” the director of Jubileo Foundation, Juan Carlos Nunez, described as worrisome the way the use and allocation of public resources is faced, because even if public investment will beat a record this year with $6,179 million dollars, there was an accelerated increase of current expenditure for wages and salaries. A budget of Bs7,379 million, intended for the payment of wages in 2005, this year will be used for the same purpose Bs31,951 million bolivianos. CAUTION Nunez said that if there is talk of a fiscal deficit of 3% of gross domestic product (GDP) in 2014 and increased to 3.6% this year is estimated, it is good to recommend a brake on current expenditure for which there is no overindebtedness. “Although, as the trend was observed towards a return to deficit stage, one of the elements that accelerated this situation has been the rapid implementation of public sector resources, especially subnational resources, registered in the late management 2014 (…). We do not talk that there should be a white slaughter in the public sector, but a better planning of expenditure,” he said. SENIOR DEBT Minister for Development Planning, René Orellana, reported that for this year Bolivia will increase its debt by at least an additional $1,500 million dollars. The external debt stood at $5,736 million dollars in December 2014. DOMESTIC DEBT The internal debt is no less significant because according to the report of the Central Bank of Bolivia (BCB), as of September last year, it amounted to $6,404 million dollars; that is $968 million more than in 2013. However, Orellana insisted that Bolivia has a high debt capacity. PRODUCTION Martinez, head of the Foundation study did not show the same enthusiasm as the minister, when talking of some figures in red in the economy. Martinez said it is important to understand the strong dependence of the Bolivian economy from the export of hydrocarbons, in a situation which shows a significant decline in prices in the international market. http://www.eldiario.net/noticias/2015/2015_05/nt150507/economia.php?n=20&-caen-ingresos-y-acaba-bonanza-economica

ReutersBolivia posts first quarterly trade deficit in 11 years

LA PAZ May 7 (Reuters) – Bolivia posted its first quarterly trade deficit in 11 years in the first three months of 2015 due to the global fall in oil, mineral and agricultural prices, the Bolivian Foreign Trade Institute (IBCE) said on Thursday. Exports totaled $2.317 billion in the first quarter, some $886 million less than in the same period of last year, while imports dropped 53 million to $2.353 billion, yielding a trade deficit of $36 million, the IBCE said. “The drop in international prices for the products the country exports, in addition to ongoing restrictions on the exports of food… and serious problems in certain markets like Venezuela do not augur a promising 2015 for Bolivian exports,” the institute added. Bolivia’s economy grew 5.5 percent last year, boosted by commodities exports and expansion of domestic demand. The government is forecasting growth of 5 percent for this year with inflation of 5.5 percent. (Reporting by Daniel Ramos; Writing by Sarah Marsh and David Gregorio) © Thomson Reuters 2015 All rights reserved http://af.reuters.com/article/energyOilNews/idAFL5N0XY6FV20150507