Bolivia says low oil prices not to slow down economic growth

Bolivia's low revenue in exports of natural gas will not impact the country's growth, which is expected to stand at 5 percent this year, Bolivian Minister of Economy and Public Finance Luis Arce has said.

The strength of Bolivia's domestic economy would make 2016 a stable year for the South American country, despite drops in oil and mineral prices over the past couple of years, Arce told a press conference on Saturday.

The low prices of oil have cut into Bolivia's revenue, as well as in natural gas exports to Argentina and Brazil.

However, Arce said the worst was over and that if prices continued to fall, they would do so by a far smaller margin and could be absorbed by the country's public finances.

Bolivia's Minister of Hydrocarbons and Energy Luis Alberto Sanchez also said the country had worked out its revenue for 2016 on the basis of low oil prices at 45 U.S. dollars a barrel.

On Sunday, West Texas Intermediate crude traded at 41.8 dollars a barrel, while Brent crude stood at 44.27 dollars.

Earlier this week, Bolivian President Evo Morales predicted that the country would receive 2.6 billion U.S. dollars in oil revenue this year, based on the 45 dollar price.

This would mark a significant drop from 2014, when the country brought in 5.4 billion dollars from crude, and from 2015, when revenue stood at 3.4 billion dollars.

However, Arce pointed out that, despite the continued drop in mineral prices since 2012, in oil prices since 2014, and prolonged drought, Bolivia continued to lead the region in economic growth.

"This is due to the change in model that took place in 2006. As part of the nationalization of hydrocarbons, the state has generated more revenue, which has allowed the transformation of Bolivian economy to be more diversified," he said.

"We will be champions for the third time this year, with a third consecutive gold medal for economic growth," Arce said. Endit