Intense pressure on the productive sector | Alta presión sobre el aparato productivo

By Correo del Sur:

Business leaders warn of a scenario of intense pressure on the productive sector

Bloqueos golpean con dureza al país

Roadblocks Hit the Country Hard

The scale of the damage caused by the roadblocks that have been carried out across the country for the past 29 days is becoming immeasurable. This Thursday, the industrial sector quantified the losses at US$1.68 billion, while losses for exporters exceed US$700 million. In total, they amount to nearly US$2.4 billion.

These severe economic damages are being amplified through domestic trade. For weeks, the roadblocks have been affecting the supply of food to markets across the country, while tourism — on which several economic sectors depend — is suffering one of its worst crises due to the cancellation of trips by domestic and foreign tourists.

Cultural activities that generate significant revenue by moving different sectors of the Bolivian economy are also suffering the consequences of this pressure tactic, which is about to complete a month. These include the Gran Poder festival in La Paz, as well as sporting events such as the Oscar Crespo Circuit in Sucre, which is held every year in Sucre and is Bolivia’s main automobile racing competition.

FOREIGN TRADE

The manager of the Bolivian Institute of Foreign Trade (IBCE), Gary Rodríguez, reported this Thursday that the economic losses caused by the roadblocks already exceed US$1 billion. “The roadblocks are generating three major losses. From the economic point of view, the impact on the economy exceeds US$1 billion; investment opportunities are also being lost and, most regrettably, lives are being lost,” he said.

He added that the export sector is one of the hardest hit by the conflict and cited figures from the National Chamber of Exporters, which has already reported losses close to US$700 million. “There is also the loss of Bolivia’s image. Who is going to dare invest in the country or engage in tourism amid such conflict?” the executive questioned.

LOSSES IN INDUSTRY

The National Chamber of Industries (CNI) and the Chamber of Industries of La Paz stated that the last 28 days of roadblocks generated a significantly negative impact on productive activity, supply chains, and the national economy.

The industrial sector warned that the situation has generated an estimated impact of 2.26% on Gross Domestic Product (GDP) and economic losses reaching US$60 million per day, with a cumulative total exceeding US$1.68 billion.

In the specific case of the industrial sector, losses are estimated at US$12 million per day, representing more than US$336 million accumulated during the period of conflict. According to projections by the industrial chambers, under scenarios of greater pressure, daily losses could range between US$15 million and US$20 million.

Industry in La Paz also reports a direct impact of US$3 million per day and accumulated losses exceeding US$84 million, in addition to more than 1,000 trucks carrying food destined for the city of La Paz being stranded.

RECOVERY

Despite the adverse scenario, Economy Minister José Gabriel Espinoza maintained that the Bolivian economy will be able to recover, although he acknowledged that the situation requires redoubled efforts to stabilize the indicators affected by the roadblocks.

Estimated losses according to the national government

From the government side, the Minister of Economy and Public Finance, José Gabriel Espinoza, reported that the economic losses resulting from the roadblocks exceed US$500 million in exports alone, in addition to significant impacts on day-to-day economic activity and key productive sectors.

Speaking to the media, the authority explained that the damage is not limited to foreign trade but also affects the economy of independent workers and the informal sector. “In terms of exports, losses already amount to a little more than US$500 million,” he stated.

He warned that this amount must be added to losses at the microeconomic level. He gave the example that a transport driver loses between 150 and 250 bolivianos in daily income, while a self-employed worker or street vendor stops earning between 200 and 250 bolivianos per day due to the paralysis of activities. The Minister also warned about the severe impact on the tourism sector, where — according to him — cancellations of reservations are being recorded three to four months in advance, worsening the chain effect of the economic damage.

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