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
