Colombia: 2017 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Colombia
IMF Staff Country Reports, May 31, 2017
Source details
- Canonical URL
- Colombia: 2017 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Colombia
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Bibliographic details
- Published: May 31, 2017
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781484302163.002
Overview
- This 2017 Article IV Consultation highlights Colombia’s favorable outlook, underpinned by the peace agreement, structural tax reform, and the authorities’ infrastructure agenda.
- Economic activity will rebound slightly in 2017 as investment strengthens, boosted by reduced corporate taxation and confidence stemming from the peace agreement.
- Nontraditional exports are gaining steam thanks in part to ongoing efforts to reduce trade barriers, and this will help bring the current account deficit to its equilibrium level.
- Medium-term growth will be driven by economic diversification away from oil, which will benefit from the infrastructure agenda, and the peace agreement, which will improve competitiveness and regional development.
Key findings and projections
- Economic activity: rebound slightly in 2017 driven by stronger investment.
- Investment drivers: reduced corporate taxation and increased confidence from the peace agreement.
- Exports and external position:
- Nontraditional exports are expanding.
- Efforts to reduce trade barriers are contributing to export performance.
- These developments will help bring the current account deficit to its equilibrium level.
- Medium-term growth:
- Diversification away from oil is a key driver.
- Infrastructure agenda and peace agreement expected to improve competitiveness and regional development.
Policy implications and priorities
- Structural tax reform contributes to stronger investment through reduced corporate taxation.
- Continued implementation of the infrastructure agenda to support diversification and growth.
- Trade policy: ongoing reduction of trade barriers to support nontraditional exports.
- Peace agreement: maintaining confidence and ensuring regional development to enhance competitiveness.
Technical subjects and keywords covered
- Subject: Credit, Economic sectors, Expenditure, External debt, Money, Public debt, Public sector
- Keywords: Banco de la República, bank portfolio, CR, Credit, financial system, FX liquidity risk, Global, inflation expectation, inflation pressure, ISCR, monetary policy, output gap, Public sector
Content in this bundle
- Country Report