Bolivia: 2018 Article IV Consultation-Press Release and Staff Report
IMF Staff Country Reports, December 21, 2018
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- Canonical URL
- Bolivia: 2018 Article IV Consultation-Press Release and Staff Report
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Bibliographic details
- Published: December 21, 2018
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781484392041.002
Summary and key findings
- After years of impressive growth and poverty reduction, Bolivia is facing a more challenging period.
- Accommodative fiscal and monetary policies combined with lower gas and minerals prices have contributed to:
- continued large twin deficits,
- foreign reserve losses,
- a sharp increase in public debt.
- External competitiveness has been negatively affected by:
- the appreciating US dollar,
- high wage growth,
- domestic policies that have hindered private sector investment.
- A definitive change in the policy stance is warranted to:
- restore external balance,
- minimize a further buildup in vulnerabilities,
- promote broad based growth.
Economic challenges and drivers
- Fiscal and monetary stance:
- Described as accommodative and contributing to macroeconomic imbalances.
- Commodities and external sector:
- Lower gas and minerals prices have reduced external revenues.
- Foreign reserve losses have occurred alongside large twin deficits.
- Public finances:
- A sharp increase in public debt is highlighted as a concern.
- Competitiveness and investment:
- Appreciation of the US dollar and high wage growth have reduced external competitiveness.
- Domestic policies have hindered private sector investment.
Policy implications and recommendations
- The report calls for a definitive change in the policy stance to:
- restore external balance,
- limit further buildup of vulnerabilities,
- support broad based growth through improved competitiveness and private sector investment.
Publication and metadata
- Pages: 79
- Volume: 2018
- Issue: 379
- Series: Country Report No. 2018/379
- DOI: https://doi.org/10.5089/9781484392041.002
- Stock No: 1BOLEA2018001
- ISBN: 9781484392041
- ISSN: 1934-7685
- Publication date on landing page: December 21, 2018
- Subjects: Banking, Commodity prices, Credit, Economic sectors, Expenditure, Money, Prices, Public debt, Public investment and public-private partnerships (PPP), Public sector
- Keywords: accommodative fiscal policy, boom period, central bank, commodity, Commodity prices, CR, Credit, exchange rate, exchange regime, fiscal policy, Global, ISCR, Public investment and public-private partnerships (PPP), Public sector, U.S. dollar
International Monetary Fund. Bolivia: 2018 Article IV Consultation-Press Release and Staff Report (Country Report No. 2018/379).
Content in this bundle
- Country Report