The International Monetary Fund praised Colombia for its good path “towards a more sustainable growth trajectory”, after having seen the situation in the country after the visit it made in February. In its annual report on the situation of the South American nation, the international organization recognized that inflation has not given way to the rise despite the strict monetary policies that President Gustavo Petro has repeatedly criticized.
The congratulations of the international organization to Colombia come just when the most recent economic estimates do not seem to be so positive.
The agency highlighted the growth of the Colombian economy in 2022 when it was 7.5%, but estimated that for this year it would be only 1%.
Despite this scenario, analysts from the International Monetary Fund (IMF) said that “Colombia’s economic fundamentals, policies and policy frameworks are extremely strong and underpin the country’s resilience“.
Conclusions reached by the group from the multilateral organization after its visit to Bogotá in February, when it recommended that in order to lower double-digit inflation, it is necessary to maintain a strict policy of the Central Bank, with the increase in rates that discourages consumption. Gustavo Petro, the country’s president, said that the increase in interest rates “It would only bring Colombia the global recession“.
In February, the interannual Consumer Price Index (CPI) was 13.28%, three tenths above the January record and being this the eighth consecutive data that the country accumulates above 10%.
And it is that although interest rates have not ceased their increase, the Government has repeatedly failed to make the inflation data drop and, instead, the local currency has devalued considerably against the dollar, while international investors are concerned the announcements of the Gustavo Petro administration about hydrocarbon projects.
The Fund recalled that reforms must be carried out with caution, but reiterated its congratulations to the Government for “the remarkable strength of its policies and institutional frameworks” that help “to correct macroeconomic imbalances, while improving equity and social inclusion”.
According to the IMF, the South American country must be alert to international movements, since with the advance of the war in Ukraine and rumors of a recession in the main economies of the world, it is almost inevitable that the finances of emerging nations will not be seen affected.
Regarding this, the entity affirmed that the agreement approved two years ago within the framework of the Flexible Credit Line (LCF) allows Colombia to access a fund of approximately 9.8 billion dollars, as a precaution if risk scenarios arise. global, oblivious to Colombian problems.
With EFE and local media.
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