Bolivias economic crisis has intensified, causing widespread hardship and regional implications.
A severe dollar shortage has crippled imports, devalued the boliviano, and driven inflation.The official exchange rate of 6.96 bolivianos per dollar no longer holds, with the parallel market rate soaring to 13 bolivianos per dollar.
Foreign reserves have plummeted from $15 billion in 2014 to under $2 billion in 2024, leaving the government unable to fund critical imports like fuel.The country relies on imports for 56% of its gasoline and 86% of its diesel.
However, dwindling reserves have created fuel shortages, forcing citizens to wait up to 30 hours at gas stations.This disruption has paralyzed transportation, agriculture, and mining sectors, further weakening the economy.
Years of subsidies and dependence on declining natural gas exports have compounded the crisis.The situation has triggered mass migration to Peru, with thousands crossing informal border routes daily in search of basic goods or to escape economic despair.Economic Collapse in Bolivia Drives Thousands to Flee Across Borders.
(Photo Internet reproduction)Border towns like Desaguadero report up to 70% of businesses closed due to reduced spending and supply chain disruptions.
Chile has increased military patrols along its border, fearing irregular migration.Protests against rising prices and shortages have erupted across Bolivia as citizens face deteriorating living standards.
Experts warn that over one million Bolivians may migrate if conditions worsen.
Comparisons with Venezuelas economic collapse highlight the risks of prolonged inaction.With elections looming in August 2025, political uncertainty hampers necessary reforms like reducing subsidies and diversifying exports.
Without decisive action, Bolivias crisis threatens deeper instability and broader regional consequences.