Bolivia's blockades cause $2 bn GDP loss and spur new defence minister appointment

In May 2026 Bolivia endured a month of intense road blockades and sectoral protests that halted production, disrupted transport and curbed exports. Official estimates place the economic damage at roughly US$2 billion – about 4 % of the country’s GDP – deepening an already fragile fiscal situation marked by a 12.2 % deficit and public debt near 90 % of GDP. The unrest also weakened investor confidence and strained foreign‑exchange reserves.

Amid the turmoil President Rodrigo Paz Pereira named Ernesto Justinianó as the new defence minister and announced a draft law to regulate states of exception. The president and the new minister stressed that any use of force would be “humanitarian and within the constitutional framework,” while pledging dialogue with social groups to restore normalcy.