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Bolivian economy is healthy but reserves are a concern

Tuesday, February 21, 2023


Exports last year reached record levels, although imports were almost as high. President Luis Arce's government has had some success in reducing the fiscal deficit, but this too remains large. The weak point of the economy has been the progressive depletion of international reserves, and the government is seeking to staunch this flow.


  • Output will continue to be vulnerable to climate variation and interruptions to normal supply patterns.
  • A fall in gas prices, which depend on those of oil, would exacerbate fiscal difficulties.
  • Ratings agencies may look askance at the balance between international reserves and debt obligations.

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