Bolivians’ investment expectations decrease | La expectativa de inversión de los bolivianos se reduce

By Marco Antonio Belmonte, Vision 360:

Ipsos Ciesmori Survey

The Investment Index in Bolivia stands at 20.9 points, suggesting a conservative trend among consumers regarding significant purchases or investments.

Hay menor confianza de la gente para invertir, según encuesta de Ipsos Ciesmori. Foto ABI

There is less public confidence in investing, according to an Ipsos Ciesmori survey. Photo: ABI

In a year, Bolivians’ confidence or investment expectations have declined and deteriorated among the population, according to a recent survey conducted by Ipsos Ciesmori to measure the Primary Consumer Sentiment Index (PCSI) and its employment and investment variables.

The Investment Index in Bolivia stands at 20.9 points, suggesting a conservative trend among consumers regarding significant purchases or investments. This behavior could have implications for various economic sectors. As a reference, countries like Colombia and Mexico show indices above 45 points in this aspect.

In October 2023, that is, a year ago, this index was at 31.2 points, very close to Chile’s 38 points, for example.

Infographic: Diego Gonzáles

By cities, there are also differences in Bolivia. La Paz shows the highest lack of trust in investment, with the Investment Index at 19.8 points, significantly lower than the 35.5 recorded in October of last year.

In El Alto, the score is similar at 19.7 points, while in Santa Cruz, the index is 22.3, and in Cochabamba, it stands at 20.8 points. However, last year these figures were above 30 points, indicating a decline in investment confidence in 2024.

Other Variables

The Ipsos Primary Consumer Sentiment Index (IPSC), in place since 2010, measures consumers’ attitudes toward the current and future state of local economies, personal financial situations, savings, and confidence in making significant investments.

The Consumer Confidence Index (CCI) is one of four sub-indices that make up the Primary Consumer Sentiment Index (IPSC). This metric enables regular and periodic comparisons across more than 24 countries.

The IPSC measures consumer attitudes about the current and future state of local economies, personal financial situations, savings, and confidence in making major investments.

The IPSC metrics reported monthly for each of the 24 surveyed countries consist of a “Primary Index” based on 10 questions and four sub-indices, each comprising 10 questions.

In Bolivia, the Consumer Confidence Index (CCI) is at 12.3 points, the lowest among the evaluated countries in the region. This figure suggests a cautious perception among Bolivians about the current and future economic situation, potentially influencing consumption decisions in the coming months. By contrast, countries like Brazil and Chile maintain indices above 35 points.

As for the Expectations Index, Bolivia records 39.4 points, the country’s highest sub-index. However, this figure is lower compared to other countries in the region, where nations like Argentina and Peru exceed 45 points. This indicates that Bolivians hold moderate expectations regarding the economic future.

Finally, the Employment Index reaches 18.4 points, reflecting a reserved perception of Bolivia’s labor market. This score indicates room for improvement regarding perceptions of stability and employment opportunities in the country.

According to Ipsos Ciesmori, this situation presents opportunities for improvement for both the government and the private sector, who could consider implementing strategies to strengthen consumer confidence. The contrast with other countries in the region highlights the importance of actions aimed at improving economic perceptions and fostering sustainable growth in Bolivia.

Methodology

  • The Consumer Confidence Index (CCI) has been conducted in Bolivia since April 2023.
  • The target population consists of individuals over 18 years old of both genders with internet access.
  • In Bolivia, 1,200 people were interviewed between August and October 2024.
  • The data collected in each survey is weighted so that the sample composition better reflects the demographic profile of the adult population according to official demographic data.
  • The data is also weighted to give each city the same weight in the country’s total sample.
  • Online surveys can be considered representative of individuals who used the internet in the past six months.
  • At the beginning of 2023, internet penetration in Bolivia exceeded 65%; social media users numbered more than 7.5 million, and mobile connections were equivalent to 106.7% of the total population.

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