The Bolivian government responded on Monday to Moody’s Investors Service’s negative outlook for the country, rejecting it and emphasizing Bolivia’s economic stability and growth.
According to Zenón Mamani, the Vice Minister of Budget and Fiscal Accounting, Moody’s outlook fails to consider several positive macroeconomic factors contributing to the country’s stability.
Mamani highlighted Bolivia’s economic growth, which saw a remarkable shift from -8.7 percent in 2020 to 6.1 percent in 2021 and 3.5 percent in 2022.
Additionally, the country is projected by the World Bank to have one of the top three growth rates in the region, reaching 2.5 percent this year.
He expressed regret that Moody’s did not consider this positive outlook.
The official also pointed out Bolivia’s low accumulated inflation rate of 0.6 percent as of May 2023, the lowest in South America, indicating the country’s ability to control inflation and maintain stability.
Mamani attributed price stability in the domestic market to policies regarding hydrocarbon and food subsidies, which help maintain stable fuel prices and protect the purchasing power of Bolivian salaries.
Furthermore, he emphasized the progress in implementing projects initiated in previous administrations, which will generate income and foreign currency for the country.
He mentioned the reduction of liquidity pressure on Net International Reserves (NIR) through the enactment of Law 1503 for the Purchase of Gold and the positive variation expected in NIR due to increased exports of various products.
Despite Moody’s negative outlook, Bolivia remains confident in its economic stability and ongoing growth, backed by favorable macroeconomic indicators and promising prospects for the future.