LatinNews Daily - 21 August 2026

*Bolivia’s central bank (BCB) has said that economic activity suffered a “pronounced deterioration” in the first half of 2026, falling by an estimated 3.34% between January and June. It said that this reversed a slight recovery of 0.06% during the first three months of the year. The BCB identified the major anti-government protests in May and June, which included roadblocks across the highway network, as a principal factor in this year’s economic contraction, compounding problems posed by fuel shortages. The biggest contraction between January and June was seen in the construction sector (-27.3%), followed by transport and communications (-9.5%) and trade (-8.6%). In contrast, activity in the extractive sector increased by 9.9%, while the agriculture, forestry, and fishing sector grew by 3.2%. The BCB predicted that GDP will contract by a total of 3.6% in 2026, “as a result of the contraction in the construction sector, higher costs for imported inputs, climatic effects, and the deterioration of household incomes in real terms”.

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