IMF confirms 3.8 percent growth for Bolivia, above regional average

Yesterday, the International Monetary Fund (IMF) confirmed Bolivia’s growth forecast of 3.8 percent for this year, a figure above the regional average (3.5 percent).

In the World Economic Outlook report, the growth forecast for Latin America and the Caribbean for 2022 was raised slightly to 3.5 percent, while the forecast for 2023 was lowered to 1.7 percent amid high inflation and the conflict between Russia and Ukraine.

“Bolivia is forecast to grow 3.8 percent year-on-year in 2022, slower than in 2021 but sufficient to bring GDP (gross domestic product) back to pre-pandemic (new coronavirus) levels by the end of the year,” the report said.

Continued high commodity prices will continue to boost export revenues from mining and agriculture.

According to Bolivia’s Ministry of Economy and Public Finance, the 2022 fiscal and financial program for Bolivia envisions growth of 5.1 percent, implementing the productive social-community economic model.

Last week, the World Bank raised its growth forecast for the Bolivian economy to 4.1 percent this year, while the Economic Commission for Latin America and the Caribbean (ECLAC) predicts a 3.5 percent recovery.

According to the IMF, the biggest concern is persistent inflation in both developed and emerging economies.

The average rate will reach 6.6 percent globally by the end of the year, without considering more volatile food and energy prices.

For Bolivia, inflation is forecast to rise to 4.2 percent by the end of the year, as international prices are partly driven by food and energy.

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