Standard and Poor's maintains Bolivia rating with stable outlook
Rating agency Standard & Poor's maintains Bolivia's rating of BB- with a stable outlook in a complex international economic environment, said Deputy Treasury and Public Credit Minister Sergio Cusicanqui.
"This Standard and Poor's rating on Bolivia with BB means that Bolivia is able to cope with its economy in an unfavorable international context, that is good news for the country that demonstrates its stability and growth," the official told reporters.
Bolivia reached a risk rating of BB- in May 2012 for the first time in its history, with a stable outlook, because it reduced the level of its external debt with respect to the Gross Domestic Product (GDP) and obtained sustained economic growth, an increase in fiscal revenues and a prudent monetary policy.
The rating agency also highlighted in its report the economic growth of Bolivia, the best in the region in the last four years. In 2019 Bolivia will have a growth of 4 percent, which coincides with the projections made by international organizations such as the World Bank, the International Monetary Fund and the Economic Commission for Latin America and the Caribbean. The recent data provided by the international risk rating agency have been achieved thanks to the Economic Community Social Productive Model that has been implemented since 2006.
The economic activity will continue to be supported by ambitious investment projects that are contemplated in the Economic and Social Development Plan, which constitutes the strategic framework to be developed in order to establish the conditions for the country to be constituted in the center of regional energy integration.
The Bolivian external sector still remains strong since in 2018 the external imbalances were reduced and the external strength of the Bolivian economy was maintained. The report indicates that the deficit in the current account (4.9 percent of GDP) was lower than in 2017.
The trade balance of goods was less deficit (1.2 percent of GDP), thanks to the better performance of exports, and net international reserves with respect to GDP continue among the highest in the region (22 percent).