01/18/2024 – 18:42
S&P Global Ratings reiterated Colombia's foreign currency credit rating at BB+ for the long term and B for the short horizon. The agency, however, revised the outlook from stable to negative, given prospects of slower economic growth, which could harm the fiscal outlook and worsen external vulnerability.
In a statement, the institution estimates that the Colombian Gross Domestic Product (GDP) will have increased by 1.2% in 2023 and predicts a marginal acceleration of 1.3% this year. The modest growth scenario mainly reflects weak domestic demand and low levels of investment, according to the analysis.
“The inability to boost economic growth could gradually erode the sovereign’s financial profile,” warns the agency, which draws attention to the fact that Colombian President Gustavo Petro has a limited base in Congress.
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