Real GDP growth in Bolivia will contract in the coming quarters

The economic impact of Covid-19 will exacerbate the country’s recent growth slowdown as the Bolivian government maintains restrictions on mobility and business activity. In addition, the dual impact of weak global demand and the inability of the OPEC+ group to extend oil supply cuts during a March 2020 meeting will undermine global energy prices and constrict Bolivian natural gas production in the coming quarters. Therefore, we now forecast Bolivian real GDP will contract 0.3% y-o-y in 2020, its first recession in over 30 years.