## Bolivia: 2018 Article IV Consultation-Press Release and Staff Report

_IMF Staff Country Reports, December 21, 2018_

## Source details

**Canonical URL:** [Bolivia: 2018 Article IV Consultation-Press Release and Staff Report](https://www.imf.org/en/publications/cr/issues/2018/12/21/bolivia-2018-article-iv-consultation-press-release-and-staff-report-46492)

## Other formats

- [Markdown version](/en/publications/cr/issues/2018/12/21/bolivia-2018-article-iv-consultation-press-release-and-staff-report-46492/index.md)
- [Structured JSON version](/en/publications/cr/issues/2018/12/21/bolivia-2018-article-iv-consultation-press-release-and-staff-report-46492/index.json)
- [Bundle manifest](/en/publications/cr/issues/2018/12/21/bolivia-2018-article-iv-consultation-press-release-and-staff-report-46492/bundle-manifest.json)

## Bibliographic details
- Published: December 21, 2018
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781484392041.002

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### 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).*

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## Content in this bundle

- **Country Report**
  - [Country Report (Markdown version)](/-/media/files/publications/cr/2018/cr18379.pdf.md){rel="alternate" type="text/markdown"}
  - [Country Report (PDF)](/-/media/files/publications/cr/2018/cr18379.pdf){rel="external" type="application/pdf"}

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_Source: https://www.imf.org/en/publications/cr/issues/2018/12/21/bolivia-2018-article-iv-consultation-press-release-and-staff-report-46492_