Bolivia economy to perform strongly in 2017

Subject

Bolivia's economic outlook.

Significance

Bolivia continues to buck the trend in terms of Latin American growth rates, with official expectations for growth this year of 4.7%, somewhat more than in 2016. Inflation is expected to remain at modest levels of around 4%. As in previous years since the collapse of gas prices, domestic demand will be the motor of growth.

Impacts

• Levels of public investment will remain far higher than in most Latin American countries.
• Exports should stabilise this year, albeit at rates well below those of the 'super-cycle' years.
• A new gas-supply contract will need to be negotiated with Brazil over the course of the next year.