IMF Staff Country Reports

Bolivia : 2016 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Bolivia

Author/Editor:

International Monetary Fund. Western Hemisphere Dept.

Publication Date:

December 22, 2016

Electronic Access:

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Summary:

Bolivia’s macroeconomic management of the commodity boom facilitated a decade of strong macroeconomic performance and poverty reduction, and the accumulation of sizable policy buffers. As Bolivia remains one of the most commodity-dependent countries in the region, however, sharply lower commodity prices pose serious challenges to making further progress towards the objectives laid out in the authorities’ Patriotic Agenda 2025, including eradication of extreme poverty, better access to health and education, and state-led industrialization. As the authorities implement their 5-year development plan (Plan de Desarrollo Económico y Social 2016–20), sizable fiscal and external current account surpluses during the last decade have turned into large deficits. These deficits are projected to persist over the medium term under current policies, eroding policy buffers and raising questions about the sustainability of the plan.

Series:

Country Report No. 16/387

Subject:

Article IV consultations Banking sector Bolivia Commodity price fluctuations Debt sustainability analysis Economic growth Economic indicators Fiscal policy Flexible exchange rate policy Hydrocarbons Monetary policy Press releases Staff Reports Stress testing