In 2024, GDP grew 1.7% with inflation of 5.2%, but fiscal deficit reached 6.8% of GDP and debt reached 60%. The government projects to reduce the deficit to 5.1% in 2025 with a 23% increase in revenues, which is not feasible without reform and spending cuts. On the other hand, tensions with Trump provoked the resignation of Chancellor Murillo. A Council of Ministers evidenced fractures in the government, causing the departure of five ministers and anticipating a recomposition of the left for 2026.
Fiscal crisis and standoff over the referendum
