Bolivia achieved impressive economic and social advances from 2004–14.
Since the drop in commodity prices, the authorities have implemented countercyclical
policies and an ambitious five-year investment plan (PDES). These have
supported strong growth but contributed to large fiscal and external current account
deficits and foreign reserve losses. In the context of low commodity prices and an
expected decline in gas and minerals production, a rebalancing of policies is needed
to preserve earlier social gains, limit the build-up in macro vulnerabilities, and
support sustainable and inclusive growth.
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