This report looks at Bolivia's main economic indicators over the past year (mid-2006 to mid-2007), noting improvements in growth, fiscal balances, balance of payments, and international reserves. These improvements were largely due to government policies and choices, such as increased hydrocarbons royalties and control over the hydrocarbons sector, and have allowed the government to embark on a number of programs targeting the poor and landless. The report also notes that Bolivia faces many challenges: expansion of land reform, more rapid growth and poverty reduction, the reduction of regional and demographic disparities, and an accelerated diversification of the economy away from hydrocarbons and minerals.