Proceeding cautiously with major structural reforms is one of the main recommendations of the International Monetary Fund (IMF) to the government in the conclusions document at the end of the review of the Colombian economy as part of Article IV.
It points out that an “ongoing robust communication strategy” will be essential to increase productivity, improve inclusion and ensure a gradual and well-ordered transition to a greener and more diversified economy.
The technical team of International Monetary Fund (IMF) headed by the Head of Mission for Colombia, Ceyda Oner, also stressed that the adoption of the 2022 tax reform, the prudent financial plan for 2023, the reconfirmation of the inflation target and the related tightening of monetary policy are particularly noteworthy and consistent facts are with the implementation of very solid policies in Colombia.
Speaking at a press conference, Oner said macroeconomic policies should continue in a contractive stance, prioritizing the goal of reducing inflation and external imbalances in a sustainable manner.
According to the official, GDP growth is expected to slow significantly in 2023 due to the tightening of macroeconomic policies, the slowdown in the global economy and higher global borrowing costs.
It is assumed that additional increases in monetary policy rates may be necessary, depending, among other things, on developments in inflation, inflation expectations and demand conditions.
The report emphasizes that the goal of reducing Colombia’s dependence on oil and coal is “laudable” and that a successful transition requires the development of a well-communicated and gradual plan that balances the energy needs of the internal economy with its ability to absorb foreign resources. generate energy. currency, in a context of transition to low carbon emissions of the global economy.
They agree with a gradual transition that can be sustainable and sustainable, with a clear understanding of how revenue from the mining power sector will be replaced.
This transition should be complemented by efforts to diversify Colombia’s export base with measures that strengthen the investment climate and increase human capital, trade openness and competitiveness.
Source: El heraldo
Roy Brown is a renowned economist and author at The Nation View. He has a deep understanding of the global economy and its intricacies. He writes about a wide range of economic topics, including monetary policy, fiscal policy, international trade, and labor markets.
