Bolivia: 2025 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Bolivia

Bolivia’s chronic macroeconomic imbalances have reached acute levels, exacerbated by a structural decline in gas production, sociopolitical tensions, and climate shocks. Fiscal deficits are large and are predominantly being financed by the central bank. Usable foreign exchange (FX) reserves have been nearly exhausted for over a year and pressures in the FX market have intensified (symbolized by an over 80 percent gap between the official and parallel exchange rates). Despite the increasingly urgent economic situation, macroeconomic policies remain broadly unchanged, with limited measures implemented in response to emergency bottlenecks. Bolivia will hold general elections in August, with a possible second round in October.