Poverty increases due to economic, social, and political crisis | Aumenta pobreza por crisis económica, social y política

By El Diario:

The cost of living in Bolivia rises

  • The devaluation of the boliviano, in relation to the dollar in the parallel market, worsens the economic situation of the most vulnerable population, particularly the informal sector that relies on daily income.
Informality is expanding across the country.

The economic crisis in the country is worsening, with a clear indication being the rise in poverty, driven by the increased cost of living. This is further compounded by the social and political uncertainty experienced by the Bolivian population. Four out of every ten people are living in poverty, facing serious limitations in meeting their basic needs.

“Bolivia ranks third in poverty in South America, meaning that approximately four out of ten inhabitants in our country are poor,” according to Fernando Romero, president of the Tarija Departmental College of Economists.

Additionally, the devaluation of the national currency against the dollar worsens the purchasing power of the most vulnerable families, reducing their consumption and slowing down the economy’s overall activity.

Romero noted that the latest poverty data for Bolivia, according to the National Institute of Statistics (INE), showed a rate of 37.7% in 2022. He added that this figure is likely to have increased, considering not only the country’s challenging economic situation, which affects the income of its predominantly informal workforce, but also the low population growth rate since 2012, as highlighted by the 2024 Census, which could further impact poverty levels in Bolivia.

Meanwhile, the Chilean newspaper Pulso published a poverty ranking placing Bolivia third, with a rate of 36.3%, behind Argentina (52.9%) and Venezuela (51%). Below Bolivia are Colombia, Peru, Ecuador, and Paraguay.

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