"The money is no longer enough": study reveals perception of decline in the personal finances of Bolivians

Recent research on the local economy in Bolivia indicated that people perceive that their financial capacity is insufficient to support families, a trend that was already evident in January of this year, when various Bolivian sectors already They viewed the country’s economic situation with concern.

The government, on the other hand, seemed optimistic at the beginning of the year, when it denied that they were in crisis and assured that there was “stability” in the economy.

According to recent surveys by the firm Ipsos Ciesmori carried out in the cities of La Paz, Cochabamba, Santa Cruz and El Alto, in the third quarter of 2024, 65% of those consulted consider that their personal financial situation is very weak, while in the same period of 2023, the perception was of 61%.

The lack of dollars is perceived as the factor that most affects the current economic situation. “Two-thirds of respondents have had difficulties obtaining dollars in the last month, reflecting the shortage of foreign currency in the country,” the survey states.

Regarding the study and when there are only a little more than two months left until it ends this year, the Voice of America He randomly consulted Bolivians, many of whom continue to perceive that things are not going well in their pockets, similar to what was happening at the beginning of this year.

“The money is no longer enough,” he said bluntly to the Voice of America the Bolivian Eulalia. “I don’t know what we are going to do, where we will get to, it is not enough when we have so many children. It is not like before, with 100 bolivianos we knew how to fill everything, but now it is not possible, it is expensive,” he concluded.

María, also a Bolivian in charge of shopping to feed her family, laments, for example, the difficulty in finding rice, an essential product in their diet.

“Everything has gone up, rice is so expensive, there is so much queue, that’s how we are. It’s not enough,” he confirmed.

What does the recent study by the firm Ipsos Ciesmori say?

The 4% increase in the third quarter of 2024 in the perception of an increase in the cost of living in the cities of La Paz, Cochabamba, Santa Cruz and El Alto has been explained in the document called “Public Opinion Monitor 2024″.

The study indicates that there is a general negative trend in citizens’ perception of the direction of the country. “In the four cities there was an increase in the percentage of people who believe that the country is not on the right track.”

The perception of the national economy has worsened significantly in the third quarter of 2024, says the polling firm. “81% rate the country’s economy as “very weak”, in the second quarter, this percentage was 68%, so it had an increase of 13 percentage points.”

The personal financial situation also shows a deterioration according to the recent study. In La Paz, for example, 64% of respondents rate their financial situation as “very weak.” In important cities such as Santa Cruz, this percentage is 67%, in Cochabamba it is 58% and in El Alto it is 69%. While only a small percentage of the population in these cities considers their financial situation to be “very strong.”

Private companies, indicates Ipsos Ciesmori, have a positive opinion for 70% of those surveyed, while public companies have a negative perception for 66%. “This contrast highlights trust in the private sector versus distrust in the public sector,” estimates the study.

Regarding the cost of living, 50% of respondents report financial difficulties, compared to 12% who feel comfortable with their finances. Women, households with minors and residents of La Paz perceive more difficulties.

“An increase in the inflation rate (79%) and the number of unemployed (78%) is anticipated for next year. However, 24% expect their disposable income to increase,” the survey states.

Economic Situation

The lack of dollars is perceived as the factor that most affects the current economic situation (84%). Two-thirds of those surveyed have had difficulty obtaining dollars in the last month, reflecting the shortage of foreign currency in the country.

Nearly half of those surveyed are in favor of gradually withdrawing the fuel subsidy.

What is the political context and how does it impact?

The perception of President Luis Arce’s management is mostly negative, with 40% of Bolivians surveyed believing that his image was weakened after his statements about an alleged “coup attempt.”

These data coincide with a context of a country that is struggling with a local political crisis due to the rivalries of current president Luis Arce and former president Evo Morales, who were very close years ago. Today they dispute the leadership of the ruling Movement towards Socialism (MAS) party.

The consequences are evident, for example, in the seriously affected supply of food and fuel in the main cities of Bolivia. after five days of road blocks by followers of former president Evo Moraleswho seek to prevent him from facing justice in a case of alleged human trafficking and smuggling.

Some 500 tank cars with 17 million liters of gasoline and diesel were stranded on Friday on several roads whose traffic was interrupted while the queues of vehicles seeking to refuel at service stations grew, Juan José Callau, Marketing Manager, told international media. of the state oil company. Passenger transport between cities was also affected.

What do the analysts say?

Economic analyst Marcelo Rocha, consulted about the results of the study by the Ipsos Ciesmori firm, told the VOA that the level of conflict that Bolivia is experiencing also aggravates the uncertainty of citizens who perceive little confidence in the authorities to resolve problems.

“All people are realizing that the economy is entering a kind of crisis, inflation and prices are going to continue increasing and even more so with these conflicts,” said Rocha.

“The image that the State gives about the solution to the problems is not being well received, they are not enough and the deterioration of the economy is going to affect the population in general and companies, which would also cause a higher unemployment rate,” projection.

What is the plan of the Arce government?

In the midst of this situation, the government of President Luis Arce established a zero tariff for the importation of rice for three months. With this measure, the Bolivian authorities plan to import approximately 60,000 tons and thus guarantee the supply of this key food for local consumption.

In the department of Santa Cruz, for example, the government reached an agreement with meat companies to alleviate prices, however on Friday, a kilo of beef reached 28 bolivars, equivalent to 4.04 dollars at the exchange rate. of the day, a high price for the local economy.

“Until yesterday (Thursday, October 17, 2024), the prices for the hook kilo were still contemplated at 28 Bolivian pesos in Santa Cruz (4.04 dollars) and 32 Bolivian pesos in La Paz (4.61 dollars. So it seems that the figure has not changed,” he told local media in Bolivia Gonzalo Serrudo, representative of the Federation of Butchers of Santa Cruz.

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