Domestic demand to boost Bolivia’s economic rebound

Significance

Public investment halved in comparison with 2019 while on the supply side, mining, manufacturing and construction posted major slumps. All sectors contributed to the overall decline, with the exceptions of agriculture and public administration services.

Impacts

• The risk of violent protests has diminished under President Arce but demonstrations demanding financial support and job security are likely.
• The banking sector, albeit well-capitalised, will continue suffering from loan restructurings.
• Until more progress is made with vaccinations, further waves of COVID-19 pose major risks to both public health and economic development.