Bolivia’s construction industry is forecasted to register an annual decline of 3.8% (in real terms) in 2025, amid dollar shortages, surging inflation, and widespread project paralysis: According to the Bolivian Chamber of Construction (Caboco), 30-35% of developers reported suspended actives in June 2025, citing rising costs and supply shortages. Correspondingly, H2 2025 is expected to be rife with project defaults, despite persistent demand for gold and lithium exports. For context, Bolivia accounts for approximately 20% of global lithium reserves. However, weak production and collapsing exports are further exacerbating fiscal issues.
Building material prices have been rapidly increasing parallel to inflation, that reached a staggering 18.5% year-on-year (YoY) in May 2025. The international Monetary Fund (IMF) forecast 15.8% inflation for 2025, highlighting limited fiscal capacity and difficulties arising from fuel shortages, protests, and floods that are affecting food production.
Longer-term, The analyst expects Bolivia’s construction industry to recover and record an annual average growth rate of 4.1% during 2027-29, supported by investments in the transport infrastructure and renewable energy projects. In May 2025, construction work on the Faja Norte-Yapacaní road project commenced with an investment of BOB380.1 million ($55 million). The project is scheduled to be completed by early 2028. Additionally, the Ministry of Public Works, Services and Housing is planning the BOB6.9 billion ($1 billion) Tren Urbano Santa Cruz Development in Santa Cruz, with construction work scheduled to commence in Q1 2028 and end in Q4 2031.
Building material prices have been rapidly increasing parallel to inflation, that reached a staggering 18.5% year-on-year (YoY) in May 2025. The international Monetary Fund (IMF) forecast 15.8% inflation for 2025, highlighting limited fiscal capacity and difficulties arising from fuel shortages, protests, and floods that are affecting food production.
Longer-term, The analyst expects Bolivia’s construction industry to recover and record an annual average growth rate of 4.1% during 2027-29, supported by investments in the transport infrastructure and renewable energy projects. In May 2025, construction work on the Faja Norte-Yapacaní road project commenced with an investment of BOB380.1 million ($55 million). The project is scheduled to be completed by early 2028. Additionally, the Ministry of Public Works, Services and Housing is planning the BOB6.9 billion ($1 billion) Tren Urbano Santa Cruz Development in Santa Cruz, with construction work scheduled to commence in Q1 2028 and end in Q4 2031.
The Construction in Bolivia - Country Briefing (H2 2025) report provides detailed market analysis, information, and insights into Bolivia’s construction industry, including:
- The Bolivian construction industry's growth prospects by market, project type and construction activity
- Critical insight into the impact of industry trends and issues, as well as an analysis of key risks and opportunities in the Bolivian construction industry
- Analysis of the mega-project pipeline, focusing on development stages and participants, in addition to listings of major projects in the pipeline.
Scope
This report provides a comprehensive analysis of the construction industry in Bolivia. It provides:
- Historical (2020-2024) and forecast (2025-2029) valuations of the construction industry in Bolivia, featuring details of key growth drivers.
- Segmentation by sector (commercial, industrial, infrastructure, energy and utilities, institutional and residential) and by sub-sector
- Analysis of the mega-project pipeline, including breakdowns by development stage across all sectors, and projected spending on projects in the existing pipeline.
- Listings of major projects, in addition to details of leading contractors and consultants
Reasons to Buy
- Identify and evaluate market opportunities using our standardized valuation and forecasting methodologies
- Assess market growth potential at a micro-level with over 600 time-series data forecasts
- Understand the latest industry and market trends
- Formulate and validate business strategies using the analyst's critical and actionable insight
- Assess business risks, including cost, regulatory and competitive pressures
- Evaluate competitive risk and success factors
Table of Contents
1 Executive Summary2 Construction Industry: At-a-Glance3 Latest news and developments4 Project analytics5 Construction Market Data6 Risk Profile
7 Appendix
List of Tables
List of Figures
