Arce will use Bolivia’s reserves to fund investment

Significance

The drop was particularly notable in 2019, though less so in 2020. However, reserves reached arguably excessive levels during the middle years of the past decade. Even in 2020, they covered seven months of imports.

Impacts

• GDP growth will slow in 2022 to around 3.5% from 5.5% last year.
• The persistence of the COVID-19 pandemic may dampen economic activity.
• Foreign investment may pick up, but from a low base.