By Sergio Mendoza and Zijia Song, Bloomberg News

LA PAZ, Bolivia — Bolivia’s presidential election Sunday will bring an end to two decades of rule by a socialist government that ran the economy into the ground. But the giddiness of voters and investors over the prospects of change will soon give way to the reality of a difficult turnaround.

The Andean nation’s sovereign bonds have returned almost 40% this year, among the top emerging-market performers globally, on anticipation of market-friendly shifts no matter who wins the runoff between centrist Senator Rodrigo Paz and conservative former President Jorge Tuto Quiroga.

Bond spreads have narrowed nearly eight percentage points, according to data from JP Morgan Chase & Co.

The optics have been undeniably positive for markets since Augu

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