Bolivia: Central Bank projects economic growth of more than 5% in 2022

RIO DE JANEIRO, BRAZIL – The Central Bank of Bolivia (BCB) presented on Tuesday, March 8, the Monetary Policy Report (MPR) corresponding to January 2022. This document highlights the recovery and stability of the Bolivian economy during last year.

The presentation of the MPI was in charge of the president of the BCB, Edwin Rojas, who stated that the report estimates a sustained recovery of the economic activity, projecting a 6% growth in 2021.

The document also considers stable inflation, a rebound in financial intermediation, anchored expectations in the exchange market, and stabilization of the level of international reserves.

“We can highlight the sustained recovery of economic activity, stable inflation, rebound in financial intermediation, anchored expectations in the exchange market, and stabilization of the level of international reserves,” said Rojas at a press conference.

Bolivia faced a scenario of uncertainty in the context of the covid-19 pandemic last year.

“The international scenario was characterized by still high levels of uncertainty, being the resurgence of global inflation the event that determined the beginning of the withdrawal of monetary stimulus in most economies, making financial conditions less favorable globally,” said the president of the BCB.

According to Rojas, the greater activity of the world economy last year compared to 2020 had a favorable impact on export volumes.

“These elements, together with the economic reactivation policies implemented in Bolivia, gave certainty to the population, propitiated a surplus in the current account after six years, allowed the recovery of family remittances and the increase of Foreign Direct Investment (FDI),” he explained.

As for the outlook, the MPI considers that the South American country’s monetary and exchange rate policy will contribute to the recovery of the economic activity, keeping inflation under control.

The report projects that the Bolivian economy will grow around 5.1% in 2022 and that inflation will be approximately 3.3%.

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