IMF Staff Country Reports

Supported by favorable terms-of-trade, the economy has recovered more rapidly than expected and output is now nearing pre-COVID levels, although it is expected to remain below the pre-COVID trend during the next five years. The windfall from higher prices for Bolivia’s exports of food, minerals, and natural gas has bolstered private savings, some of which has been channeled to finance the budget deficit. Despite this, ongoing monetary financing, in the context of the fixed exchange regime, continues to drain international reserves. The inflation rate has been one of the lowest in the region, in large part a result of price controls and increased subsidies for food and energy.