THE INTERNATIONAL MONETARY FUND (IMF) ISSUES PRESS RELEASE ANNOUNCING THE CONCLUSION OF THE ARTICLE IV CONSULTATION
- The IMF highlights the proper management by the Colombian authorities, which allowed to consolidate the economic adjustment and continue advancing on inclusive growth during 2017.
The Executive Board of the IMF met last Friday 27 April to conclude the consultation on Article IV for Colombia. The report pointed out the recovery of the Colombian economy after the external shocks from 2014 to 2016, and highlights the strength of the policies adopted by the authorities. These policies allowed for the reduction of external imbalances and laid the foundations for economic recovery. It recognizes the role played by the Central Bank of Colombia in the process of adjustment of the economy, protecting the anchoring of inflation expectations around the 3.0% target while supporting the recovery in the pace of economic growth.
The Executive Board of the IMF states that Colombia is adapting adequately to the exogenous shocks to the economy. It also highlights the reduction of the current account deficit as a result of an increase in exports and to the consolidation of public finances guided by the fiscal rule. It also points out that the tax reform has helped to protect public investment and social spending, and recognizes that, despite the moderation of growth, poverty and inequality continue to decline. Additionally, it underscores the soundness of the financial system, and stresses the importance of the implementation of the Conglomerates Law, which will improve the supervisory and regulatory framework, including the management of corporate and cross-border risks. Similarly, it considers that the prospects for Colombia are favorable inasmuch as efforts are sustained to advance on structural reforms that foster economic diversification and productivity growth.
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