Five key points to understand the broken economy the MAS government will leave behind | Cinco claves para entender la economía quebrada que dejará el gobierno del MAS

By Rocio Chavez, Radio Fides:

Movement Toward Socialism MAS Diesel and dollar shortages /Illustrative Image/

After 20 years of hegemony by the Movement Toward Socialism (MAS), the country is facing a deep economic crisis that will define the start of the next government. The new leadership will have the challenge of stabilizing the economy in the shortest possible time. The significant drop in international reserves, together with the minimal inflow of foreign currency, has triggered rising inflation in basic food products and a clear fuel shortage, visible in long lines at gas stations.

Adding to this scenario is a high fiscal deficit, which led the government to request loans from the Plurinational Legislative Assembly (ALP), increasing the external debt without addressing structural problems. These measures generated further inflationary pressure, sending the parallel dollar soaring and causing up to a 200% increase in imported products. In addition, the slowdown of the Gross Domestic Product (GDP) and policies such as export restrictions discouraged the productive sector, reducing the generation of foreign currency and deepening the recession.

/// ED // SANTA CRUZ ///

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