Bolivia 2016: Highest Projected GDP in South America

Bolivia’s economy will grow by 5 percent in 2016, the country’s Finance Minister Luis Alberto Arce confirmed Thursday.

Bolivia’s impressive economic growth takes place in the midst of declining global commodity prices, which have depleted fiscal revenue streams for many Latin American governments.

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The news comes as the International Monetary Fund warned Thursday of a possible global recession due to slowing economic growth amid inconsistent fiscal and monetary policies, fears of a "Brexit" and the "anti-trade sentiment" dominating the U.S. presidential election campaign.

In recent years, Bolivia’s economy has benefitted from high international commodity prices and rising volumes of natural gas exports.

Due to increased revenues from gas and oil, since 2006 the Bolivian government has increased social spending in the areas of health, education, pensions and poverty alleviation programs by 45 percent.

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During a press conference Thursday, Arce emphasized the importance of diversifying production, saying the country will focus on manufacturing, agriculture and construction to build the economy over the next year.

Arce, who has been the country’s finance minister since 2006, also attributed Bolivia’s continued economic growth to sound macroeconomic policies, which have lead to a “reduction in poverty along with greater social equality.”

“This trend will continue,” Arce said in response to recent IMF projections, which estimate that the country’s real GDP will only increase be 3.8 percent.

Despite the IMF data contradicting government predictions, at 3.8 percent Bolivia is still expected to be the strongest economy in South America.