La Paz, Nov 6 (EFE) .- The Bolivian economy has shown signs of recovery due to the reactivation of international markets and some policies of the Government of Luis Arce, the so-called “father of the economic miracle”, which a year after his inauguration It is challenged to ensure that growth is sustainable and informality is reduced.
Arce, the Minister of Economy of Evo Morales in 12 of his 14 years in the Presidency, is identified by the ruling party as the “father of the economic miracle” by which Bolivia achieved an unusual growth between 2006 and 2014, a highlight that the president attributes to the so-called “productive social community economic” model launched by his party.
Although his critics often remind him that this occurred in a favorable external context with high prices of raw materials and then there was a noticeable decline since 2015, when international reserves began to decline, growth was lower and the deficit increased.
One of Arce’s promises when swearing in office was to recover an economy hit hard by the covid-19 pandemic, a global phenomenon, although the president usually attributes the blame entirely to the transitory government of Jeanine Áñez.
The first measures of the economist for the reactivation were the payment of a bonus to adults without salary, the elimination of several restrictions due to the pandemic, the creation of a tax on large fortunes and credits to the productive sector with preferential rates.
He also appealed to the strengthening of state companies and public investment and allowed the partial withdrawal of retirement contributions to “rebuild” an economy that fell to 8.8% in 2020, with an unemployment rate of 11.6% as of July from last year.
Arce has highlighted as a sign of recovery the 9.36% of economic growth in the first half of 2021.
Unemployment fell to 6.3% in September with 282,000 unemployed, “far from the high rate” registered in July 2020, the general manager of the private Bolivian Institute of Foreign Trade (IBCE), Gary Rodríguez, explained to Efe.
Foreign trade registered a favorable balance as of September for 1,500 million dollars, something that for Rodríguez is “good news, since this surplus occurs after six years of deficits.”
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