Bolivia economy projected to contract 3.6% in 2026

The Central Bank of Bolivia (BCB) projects that the country's economy will contract by 3.6% in 2026. According to its second-quarter inflation and monetary policy report, this decline is driven by a contraction in the construction sector, rising costs for imported inputs, and the potential impact of the El Niño phenomenon on agriculture.

The BCB noted that the construction slump is linked to the execution of public and private projects, which has also reduced demand for related materials like cement. Additionally, social conflicts and road blockades during the first half of the year disrupted logistics and supply chains.

Complementing these economic projections, the National Chamber of Industries (CNI) has warned the productive sector to prepare for the climatic effects of El Niño. The CNI highlighted risks such as water shortages, increased operational costs, and potential shortages of agricultural raw materials. The organization has urged the creation of a National Prevention Council to mitigate economic damage and protect food supplies.