Bolivians are in the grip of a fiscal crisis, and they’re hoping the government will be able to make good on its promises.
But with the nation’s inflation rate hitting record highs and the government struggling to balance its books, the Bolivia’s Boliviare, the flat-bar, flat-footed footwear, has emerged as the country’s most popular footwear.
And the price is just as high.
For the Bolvian government, the most obvious reason for the spike in inflation is that the country has had a surplus.
The government is now running a surplus, but the inflation is still at record highs.
The country’s inflation is at a record high.
– Inflation in Bolivia is at nearly double its pre-crisis level.
– A year ago, the country was running a deficit of around $20 million per month.
Inflation reached almost twice that figure in January, and it has since soared to around $100 million per day.
The inflation rate has risen at a staggering pace in just a year.
– The inflation is so high that the Bolivan government is worried about it and it’s running out of cash.
They have tried to get the central bank to lend them $100 billion to keep the economy afloat, but it’s just a few hundred billion dollars, the Financial Times reported.
The Bolivan government’s budget deficit has jumped from $200 million to more than $3 billion per month, according to the New York Times.
– As part of its economic restructuring plan, the government is attempting to reduce the size of the budget deficit.
In February, President Evo Morales introduced the countrys fiscal reforms.
These include lowering the tax rate and raising the basic wage, and cutting spending on education and health care.
– However, the budget is still in deficit.
And as the government’s deficit has ballooned, so have its debts.
According to the International Monetary Fund, the International Fund for Reconstruction and Development, the IMF, and the International Trade Union Confederation, there are a total of $6.6 billion of Bolivianas debts.
– With this debt burden, the economy is in danger of running out at some point.
– Bolivia’s government is also facing a debt crisis, with its credit rating downgraded from A-minus to D-.
The country has borrowed $500 million to $600 million in the last year alone, according a report from the Associated Press.
– Despite all this, the inflation in Bolivia has continued to rise, reaching record highs in January.
According for example to the Bolitavero website, inflation reached a record 22 percent in January and has since increased to 24.8 percent.
– This is especially worrying as the economy has been suffering from a severe drought, which is causing food prices to skyrocket.
– Many are wondering how this is possible, especially given the massive amount of money the Bolivais government is spending to prop up its economy.
The latest IMF estimates show that the government has a total debt of $3.2 trillion, and that the amount of debt owed to foreign creditors has increased from $2.3 trillion to $4.3 billion.
– If the Bolivas government is unable to get its budget deficit under control, it is likely that the inflation will continue to rise and the country will be forced to declare bankruptcy, the AP reported.