Bolivia forecasts 4.86% growth and 3.57% inflation for 2023.

Government Louis Arce predicts that the Bolivian economy will grow by 4.86% in 2023 and will register inflation 3.57%, according to the draft General State Budget (GSB) presented this Monday.

The data was released by the Minister of Economy and Public Finance, Marcelo Montenegro, who said that the PGE bill has already been sent to the Legislative Assembly for appropriate consideration.

“The main assumptions of PGE in terms of macroeconomics are the rate increase 4.86% rate inflation 3.57%, in the fiscal balance there is a deficit of 7.49% and in terms of the average exchange rate, in order to maintain the monetary policy that we have been pursuing all these years,” Montenegro specified.

In addition, government investment equivalent to $4,006 million is expected, of which 42% will go to the manufacturing sector.

The budget for next year aims to achieve five goals, starting with “guaranteeing macroeconomic stability and sustainability of public finances,” the minister said.

He also seeks to “deepen” the “socio-economic productive community model” launched by the government’s Movement for Socialism (MAS), “based on import substitution industrialization,” he said.

They will strengthen the productive apparatus

In addition, the national executive proposed to the next administration “strengthen the productive apparatus through stimulating policies that increase productivity in the country.”

The fourth goal is to support social policies for “redistribution of income and surplus” and the fifth aims to “strengthen the policy of universal and free access to healthcare and education,” the authorities added.

According to the economy, the budget for education will be equivalent to 10.8% of the total, health care will receive 10.1%, and defense – 1.8% among other sectors.

The national executive is forecasting to close the year with a 5.1% gain, although analysts warn that percentage will not be reached due to conflicts over the census that persist, especially in Santa Cruz, the economic engine of the country it strikes indefinitely. already 31 days.

Last October, the government of Luis Arce reported that the country’s gross domestic product (GDP) grew by 4.13% in the second quarter of this year, “ratifying” the economic recovery but not enough to pay off a second Christmas. workers’ bonus.

The Double Christmas Bonus is given to Bolivian private and public sector workers when the country’s economic growth exceeds 4.5% from July of one year to June of the next.

(As reported by EFE)