Bolivia's 2018 Economic Growth to Exceed Expectations: ECLAC

Bolivia’s economic growth is expected to increase from 4 to 4.3 percent within the next year according to an update from the Economic Commission for Latin America and the Caribbean (ECLAC), President Evo Morales said Friday.

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"Very happy because once again we will be the first in economic growth in South America. ECLAC has raised its Bolivian GDP forecast to 4.3% by 2018. We believe that it will be more than 4.5% and double bonuses will be paid. The people see the works and the reduction of poverty,” the president tweeted.

With projections for this year’s federal budget hovering around 4.7 percent, with only a 4.49 percent inflation growth, state authorities say Bolivia has a high chance of rising to the top of the fastest-growing economies in the region.

The Confederation of Private Employers of Bolivia (CEPB) has critiqued the data and questioned the president’s decision to double the yearly bonuses, saying that it could put a number of companies at risk of closure and bankruptcy. 

The ECLAC also said Bolivia, Venezuela, Colombia, Ecuador, Trinidad and Tobago also appear to have the highest percentage in net energy exports of the total amount of basic trade products.

Regionally, the ECLAC speculated rising demand would be met by both South America and Caribbean distributors, raising the regional economic activity by an additional two percent.

While the Dominican Republic and Panama are expected to lead in Gross Domestic Product (GDP) with growth rates of approximately 5.4 percent and 5.2 percent respectively.

A branch of the United Nations, the ECLAC began in 1948 and opened one of the U.N.’s five regional departments in Santiago, Chile. The commission was founded with the intention of contributing to Latin America's economic development as well as reinforcing the international and regional economic ties.