MercoPress. South Atlantic News Agency

Bolivia's economy shows positive signs of recovery

Bolivia's policies of reactivation and reconstruction of the economy are working, Montenegro said

Bolivia's General Index of Economic Activity (IGAE) showed an 8.7% growth in the first semester of 2021, Economy and Public Finance Minister Marcelo Montenegro announced Tuesday.

“A year ago, that variation was minus 12.9%,“ he added.

Montenegro explained that the current growth was recorded through a 52.4% increase in mining, construction 32.8%, transportation and storage 22.6%, and hydrocarbons 14.8%, manufactures 10.7%, utilities and water 9.6% and trade 9.1%, among others.

The minister also pointed out that the high percentage of mining was due to the momentum the sector is going through in zinc production with about 40,000 metric tons; and with tin and lead exports close to US $ 1,600 million and US $ 8,000 million, respectively, while silver was around 100 metric tons and gold is around 400 metric tons.

”The figure of 8.7 per cent is reflecting that the policies of reactivation and reconstruction of the economy,” which also shows in the in employment rates, he went on.

“The accumulated production to June is increasing in zinc by 51%, from January to June 2020, to January to June 2021. In the lead, 64%; in tin, 59%; in silver, 67%; and in gold, 63%. In other words, it is a significantly large, positive and important evolution in the mining sector,” the minister said.

In the case of construction, Montenegro mentioned that the accumulated growth is remarkable because it goes hand in hand with the 16.7% rise in the rate of the urban employed population. “The activities with a significant increase were the production of cement, with about 30%, the importation of iron bars with 55.5%, and the importation of inputs, with 25.2%,” he added.

The official also indicated that transport had a sustained increase, which shows a variation of the general index close to 69% (by road 79%, by air 34% and by railway 55%).

In turn, electricity generation grew 9.9% from January 2019 to July 2021. “I would like to reveal the electric power index that is increasing significantly in the general index close to 18%. This is a good indicator because, when the industry demands power, it demands energy, and it is because it is demanding an important input for the production of goods and services,” he added.

Restaurant billing grew 21.6% in the first semester of 2021, Montenegro also pointed out, while employment within that industry rose by 17.9%.