Construction and mining are business areas leading Bolivia’s economic rebound – Minister

RIO DE JANEIRO, BRAZIL – Construction and mining are the fastest growing sectors in the first months of the year and are leading the economic rebound amid the pandemic, Economy Minister Marcelo Montenegro said on Tuesday (20).

During an appearance before the media in La Paz, the Minister said that “the economy is recovering in several sectors” and evidence of this are the records in “economic activity, employment, and revenues.”

The main rebound has been observed in the construction sector, with 32% growth last May, reflected in the increase of iron imports and cement production, the Minister said.

The Ministry of Economy also made reference to the 5.3% growth in economic activity between January and April, marked by mining with a 34.2% growth; construction, which had increased by 17.9% over the period; in addition to 10% in hydrocarbons and 9.6% in manufacturing, among the main sectors.

Also noteworthy is the 15% increase in “invoiced sales” of restaurants, hotels, supermarkets and air travel, which during April and May posted an increase over the same period last year when the country was under a strict quarantine.

The 15% rebound reflects the “accumulated” sales of restaurants through May, reaching US$182 million, while in 2020 they totaled US$159 million.

Meanwhile, new business registrations have grown by 71% through June this year, according to Ministry data.

Montenegro also said that public investment “increased by 111%” considering June 2020 and the same month of this year, representing some US$1,676 million executed. This year, US$4,011 million will be allocated for public investment according to the General State Budget (PGE), he said.

Other aspects that stand out in this economic upturn are the payment of rescheduled credits due to the pandemic, which reached US 3,941 million by the end of June, in addition to tax collections, which reached US$3,588 million through June, 26% more than last year.

Bolivia tackled the first wave of Covid-19 infections with strict measures such as a rigid quarantine and somewhat more flexible restrictions that had an impact on its economy, which closed 2020 with an 8% contraction.

In the first half of this year, the country suffered two other peaks of infections in which the government of president Luis Arce chose to maintain the economy moving, preventing restrictions and stepping up vaccination in order to boost growth.