(Bloomberg) -- Bolivia’s economy is “on the brink of collapse” as companies go bankrupt amid road blockades, fuel shortages and a scarcity of foreign currency, according to a business leader in the nation’s biggest city.
An “accumulation of unresolved problems” is asphyxiating the country, Jean Pierre Antelo, head of the Santa Cruz Chamber of Commerce, said in a video posted on social media.
“The search for fuel is part of our daily life, but that’s not just a problem for households but a critical factor for productive sectors,” Antelo said. “There are companies that have had to stop operations due to the lack of dollars and fuel.”
The nation of 12 million has been roiled by crisis since the central bank almost ran out of foreign currency reserves last year, leaving importers struggling to get hold of dollars. That’s been aggravated by social unrest and clashes between rival factions in the ruling socialist party, which has led to disruptive highway blockades.
Many gas stations have been closed in recent days due to the fuel shortage, which the government blames on blockades promoted by supporters of former President Evo Morales. Long lines have formed in in some state stores where grocieries are offered at subsidized prices.
Amid widespread discontent caused by shortages and accelerating inflation, President Luis Arce in June faced down a short-lived military rebellion in which a group of soldiers stormed the presidential palace in an apparent coup attempt.
In an interview last month, Arce said that new projects will soon help the economy turn the corner. Incentives for foreign oil and gas majors will boost drilling, while the national gas company will start producing at a recently-discovered “mega field” as early as 2026, he added.
Morales, Arce’s presidential predecessor and now rival, hopes to make a comeback in next year’s election.
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