Economy In Bolivia

ZOOM ECONÓMICO
Issue 1/Year 1
The nominal GDP will practically doubles the one in 2005
The GDP growth rate in 2010 will top 4.5%
The General Budget of the State 2010 (PGE 2010) foresees that the Gross Domestic Product (GDP) growth rate in 2010 will be 4.5% and the Nominal GDP will reach $17.9 billion, figure that actually duplicates the one achieved in 2005 when the Nominal GDP topped $9.5billion, this is due to the sustained growth of the economy thanks to the current National Government’s policies on Productive Development.
During the period 2006 – 2008, the Gross Domestic Product growth exceeded the annual average of 5% and achieved -in 2008- a rate of 6.15%; the highest in the last 33 years.
These results are evidenced in the international scenario because they placed Boliviaas the country with the highest growth rate in Latin America in 2009.
This economic growth is the outcome of an economic policy that has combined the impulse to the consumption in the domestic market with the external market which the financial sector was boosted and it was evidenced by an important domestic saving level, record levels of Net International Reserves that exceeded the $8 billion.The Budget, establishes, as well, an average dollar purchase exchange rate of Bs7, and an inflation rate (end of period) of 4.5%.
A fiscal deficit of -4.9% as a percentage of the GDP is estimated, however, since 2006, the Budgets were passed with fiscal deficit but ended with Budget Surplus.
The PGE 2010 was elaborated based on the reference price of $61,3 per barrel in the international marketalong with exports of Natural Gas to Argentina and Brazil with an average of 24,6 millions of cubic meters per day and 5.5 millions of cubic meters daily, respectively.
However, on September 17, 2009 the price of the oil barrel in the international market topped $72 what foresaw higher revenues of what was estimated in the PGE 2010, this situation will enable the arrangement of a ReformulatedBudget by the first semester of next year.
The PGE 2010 embodies an Aggregated Budget of Bs.141 billion that is 176% higher than the Budget in 2005 and a consolidated Budget of Bs105 billion higher in 161% regarding, as well, the 2005 one.
The General Budget of the State is in instrument of Fiscal Policy that consists on the allocation of resources through the programming of revenues andexpenditures for the provision of goods and services, guaranteeing growth and economic development.

$17.9 billion is the Nominal GDP for 2010
This figure actually doubles the one recorded in 2005 when it reached $9.5 billion. This important breakthrough is due to a sustained growth that had the Bolivian Economy which boosted the productive sector.
4.5% is the estimated GDP growth rate for 2010
$1.8billion is the budget for Public Investment in 2010




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This figure corresponds to a 76% of the whole Public Investment that reaches $1.8 billion
Budget 2010 will earmark $1.3 billion to the productive and infrastructure sectors
Transport, Gas&Oil, agriculture and mining will receive a great economic support. Budget (PGE) 2010 foresees the consolidation ofthe new economic model, impulse to production since the strengthening of public enterprises, in the same way, assures macroeconomic stability remaining social policies

The General Budget of the State 2010 (PGE 2010) will allocate $1.8 billion for public investment of which 76%, it means $1.3 billion, will be to reinforce strategic productive sectors such as hydrocarbons, agriculture, mining andtransportation.
Of the total amount provided for public investment, 33% will go to the productive sector, 44% to infrastructure, 19% to the social sector and 5% to remaining sectors. With this measure, the National Government will consolidate its support to the national production aiming to boost the economy in order to generate employment, increase the domestic demand and the consumption...