Colombia : Request for an Arrangement Under the Flexible Credit Line and Cancellation of the Current Arrangement-Press Release; Staff Report; and Statement by the Executive Director for Colombia

Author/Editor:

International Monetary Fund. Western Hemisphere Dept.

Publication Date:

May 4, 2020

Electronic Access:

Free Download. Use the free Adobe Acrobat Reader to view this PDF file

Summary:

Before the Covid-19 pandemic and subsequent global disruption, Colombia’s recovery showed resilience despite a weak external environment thanks to its very strong economic policy framework and timely policy actions. The flexible exchange rate, combined with an inflation-targeting regime, effective financial sector supervision and regulation, and adherence to the fiscal rule, allowed the country to smooth the impact of a large permanent terms of trade deterioration between 2014-2016, laying the foundations for the economic recovery that was underway. Moreover, Colombia made remarkable efforts to receive and integrate a substantial number of migrants from Venezuela that helped boost domestic demand and imports. However, exports were weighed down by unfavorable commodity prices and weak partner country growth. Thus, the external deficit widened, though it was comfortably financed, largely through FDI.

Series:

Country Report No. 20/148

Subject:

English

Publication Date:

May 4, 2020

ISBN/ISSN:

9781513542867/1934-7685

Stock No:

1COLEA2020003

Format:

Paper

Pages:

70

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