Bolivia Economy Set to Shrink 3.6% This Year, the Central Bank Says
The central bank expects a 3.6% contraction in 2026. Job losses are heavy and informal work covers 69.7% of urban workers. The post Bolivia Economy Set to Shrink 3.6% This Year, the Central Bank Says appeared first on The Rio Times .
The Bolivia economy is projected to contract by 3.6% in 2026, according to the Central Bank of Bolivia. This marks a significant downturn, with job losses and a rise in informal work contributing to the challenges. The labour market is struggling, and the energy sector is facing issues, with the state oil company YPFB incurring significant fuel debt.
Additionally, Bolivia may become a natural gas importer between 2028 and 2030, according to the hydrocarbons chamber. These factors have resulted in 205,000 job losses up to June 2026, leaving many Bolivians without stable incomes or social protection. The situation is further complicated by the high proportion of informal workers—69.7% of urban workers—who face uncertainty in their jobs and lack of benefits.
President Rodrigo Paz, in office since November 2025, must now tackle both the economic contraction and the underlying structural problems in the energy and labour sectors. The central bank's forecast sets a clear benchmark for the year ahead, signaling a difficult path to recovery.
Written by urgent.news from The Rio Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
