Bolivia: Minister Rules Out Economic Crisis

Bolivia: Minister Rules Out Economic Crisis

On Thursday, the Minister of Economy and Public Finance Marcelo Montenegro denied that Bolivia is currently suffering an economic crisis, despite the adverse international context, thanks to the policies implemented by the national government.

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He indicated that this situation contrasts with the escalation of prices in neighboring countries and the world in general, which have an impact on imported goods, but the phenomenon is restrained thanks to the protective measures implemented by the executive branch.

“In Bolivia, despite this complicated external scenario, we are resilient, we adapt, we are not in crisis as (the) economic and political analysts who try to create an atmosphere of anxiety or chaos”, said the authority at a press conference.

He highlighted the policy of food and fuel subsidies, which allows us to mitigate and minimize the unusual price increases of some products on the international market.

#BTVMultimedia | El ministro de Economía, Marcelo Montenegro, descartó una crisis económica en #Bolivia y explicó que la escalada de precios en los países vecinos y en el mundo repercute en los productos importado. pic.twitter.com/uGKtGWYOJk

— Bolivia tv Oficial (@Canal_BoliviaTV)
May 28, 2024

 The text reads,

The Minister of Economy, Marcelo Montenegro, ruled out an economic crisis in Bolivia and explained that the rise in prices in neighboring countries and in the world has an impact on imported products.

A whole scheme to protect Bolivians’ pockets,” Montenegro described, “there are subsidies on hydrocarbons and foodstuffs (…). The policy of protection for Bolivian families, through the actions of the government, is there to avoid hard blows from the external sector.

Furthermore, he also recalled that on a global scale, interest rates are continuing to rise, and in Latin America they are high, in addition to which global inflation remains high, at a level of 5.3 percentage points.

“There are influences on prices that come from abroad, there are incidences of what is happening in the world economy that affect the national economy, that is to say, that there are prices in the economy that are being affected by the dynamics of price increases at a global level,” he remarked.

He commented that petrol prices are rising in South American countries, such as Uruguay, where they remain at two dollars per liter, while in Bolivia they are still at 0.54 (3.74 bolivianos).

Bolivia no está en situación de crisis económica pese a las condiciones externas adversas que provocan inflación y aumento de precios de combustibles y alimentos: Marcelo Montenegro, Min. Finanzas: @teleSURtv pic.twitter.com/egGvnatOTe

— Freddy Morales (@FreddyteleSUR)
May 28, 2024

 The text reads, 

Bolivia is not in a situation of economic crisis despite the adverse external conditions that cause inflation and increases in fuel and food prices: Marcelo Montenegro, Min. Finance

He also reported that due to geopolitical and other international problems, the Container Rate Index continues to rise.

He mentioned that, in December 2023, the approximate value of a 40-foot container was 1,500 dollars, while on 25 January 2024 this indicator rose to 3,964 dollars; on 2 May this year it fell to 2,725 dollars, and on 23 May last year it rose to 4,72 dollars.

Referring to other products, Montenegro detailed that rice increased in price in Argentina, Brazil, Uruguay and Chile, which was also observed in the Andean Amazonian country, although to a lesser extent.

“(…) Bolivia has 10.6 bolivianos (1.51 dollars) per kilogram when in Argentina it is 16.8 (2.40 dollars)”, he indicated.