Bolivia’s exports experienced a significant decline between January and August, with a 24% decrease in value and a 19% reduction in volume compared to the previous year.
The Bolivian Foreign Trade Institute (IBCE) provided these figures. The National Statistics Institute confirmed this downturn, noting traditional exports suffered the most.
IBCE’s manager, Gary Rodríguez, reported non-traditional exports still brought in over $2 billion. He praised the export sectors of meat by-products, chia, quinoa, and textiles.
Rodríguez explained that the decline in export value means less foreign currency. This currency is crucial for buying imports and paying international debts.
As per the data, exports till August reached $7.422 billion. This amount shows a sharp fall of $2.292 billion compared to 2022’s $9.715 billion.
Rodríguez underlined various reasons for this slump. Domestically, unexpected roadblocks disrupt transport.
Internationally, inflation, price falls, and higher shipping costs create hurdles. Additionally, a prolonged border blockade with Peru has stifled trade flows, he added.
Background
Historically, Bolivia has relied on exports for economic stability. The country’s wealth in minerals, natural gas, and agriculture has long been a cornerstone of its trade.
In the past, high commodity prices fueled Bolivia’s export growth. For years, gas and mining products formed the bulk of its export portfolio.
Yet, Bolivia’s trade has faced challenges. Infrastructure issues and political instability have often disrupted its export routes.
Global market shifts, like the 2008 financial crisis, also hit Bolivia hard. Now, current global tensions and the pandemic’s aftermath are impacting trade again.