Author/Editor:

International Monetary Fund. Western Hemisphere Dept.

Publication Date:

May 1, 2019

Electronic Access:

Free Full Text. Use the free Adobe Acrobat Reader to view this PDF file

Summary:

Supported by very strong policy frameworks and well-executed policies, Colombia’s recovery strengthened. The demand-led pick-up in growth is moving the economy toward internal balance but away from external balance. Looking ahead, without additional tax revenues and increased spending efficiency the fiscal tightening required by the fiscal rule will exert pressure to cut key public spending. The recovery is gaining momentum and external imbalances have widened. Despite weaker-than-expected external demand, activity should accelerate in 2019. Rebounding investment, continued policy support, and substantial migration from Venezuela are expected to lift growth to 3.6 percent while the current account deficit is expected to remain wide. Inflation is projected to remain close to target.

Series:

Country Report No. 19/106