About this work
Bolivia’s adjustment problem extends beyond its headline budget deficit. The October 2025 assessment places the deficit near 20 percent of GDP when state enterprises are included, alongside depleted external buffers and rigid spending. It forecasts weak growth and a break in the currency peg within a year, illustrating the difficult choices facing the incoming government.
Cite this work
Jonathan Fortun (2025). LatAm Views: Bolivia’s Day of Reckoning. Institute of International Finance.