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Bolivia: 2024 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Bolivia
Author:
International Monetary Fund. Western Hemisphere Dept.
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Series:
IMF Staff Country Reports
Volume/Issue:
Volume 2025: Issue 034
Language:
English
Publication Date:
31 Jan 2025
DOI:
https://doi.org/10.5089/9798400299292.002
ISBN:
9798400299292
ISSN:
1934-7685
Pages:
85
Keywords:
market exchange rate volatility; authorities' action; U.S. dollar; Bolivian authorities; government's measure; Public sector; International reserves; Inflation; Global; Caribbean
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The 2024 Article IV Consultation highlights that Bolivia's growth momentum moderated in 2023, to 2.5 percent, from declining natural gas production, less public investment, and financial market turmoil. Growth is anticipated to decelerate to 1.6 percent in 2024, holding at around 2.2-2.3 percent in the medium term under the continuation of the current policies. Inflation is forecast to reach 4.5 percent in 2024, stabilizing around 4 percent thereafter. The outlook is however predicated on significantly improved access to external financing, without which the risk of disorderly fiscal and/or exchange rate adjustment is elevated. Near-term growth is expected to remain constrained by elevated uncertainty and unfavorable financial conditions. Structural reforms to incentivize foreign investment, improve capital allocation, eliminate credit quotas and interest rate ceilings, expand and diversify the export base, strengthen fiscal and central bank governance, and revamp the regulatory framework will be crucial to eventually guide the economy to a higher medium-term growth path.
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Cover IMF Staff Country Reports
IMF Staff Country Reports
ISSN:
1934-7685
Publisher:
International Monetary Fund