## Colombia: Staff Report for the 2014 Article IV Consultation

_IMF Staff Country Reports, May 28, 2014_

## Source details

**Canonical URL:** [Colombia: Staff Report for the 2014 Article IV Consultation](https://www.imf.org/en/publications/cr/issues/2016/12/31/colombia-staff-report-for-the-2014-article-iv-consultation-41586)

## Other formats

- [Markdown version](/en/publications/cr/issues/2016/12/31/colombia-staff-report-for-the-2014-article-iv-consultation-41586/index.md)
- [Structured JSON version](/en/publications/cr/issues/2016/12/31/colombia-staff-report-for-the-2014-article-iv-consultation-41586/index.json)
- [Bundle manifest](/en/publications/cr/issues/2016/12/31/colombia-staff-report-for-the-2014-article-iv-consultation-41586/bundle-manifest.json)

## Bibliographic details
- Published: May 28, 2014
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781498395144.002

---

### Context
- Colombia’s economic performance has been robust, underpinned by a very strong policy framework.
- Last year, real GDP grew by 4.3 percent, with low inflation.
- The country has a strong external position; the financial system is sound; and fiscal policy remains guided by a structural fiscal balance rule.
- The authorities intend to undertake an ambitious infrastructure program to be executed through public-private partnerships.

### Outlook and risks
- Real GDP growth is projected to converge to potential (about 4½ percent) in 2014.
- Inflation is expected to remain within the 2–4 percent target range.
- The medium-term outlook is favorable, but risks are tilted to the downside.
- Major external risks identified:
  - a decline in oil prices;
  - a deterioration in global financial conditions;
  - volatility from the normalization of monetary policy in the U.S.
- Colombia’s important and growing ties with the global economy increase exposure to external shocks.

### Near-term policy mix
- The current policy mix is broadly adequate.
- As the ongoing economic recovery takes hold, monetary and fiscal policies are expected to shift to a more neutral stance.
- Colombia continues to rely on a flexible exchange rate to absorb external shocks.
- The authorities are taking advantage of abundant foreign inflows, primarily foreign direct investment, to strengthen their international reserve buffer.

### Medium-term challenges and policy recommendations
- Key challenge: sustain strong and inclusive growth with macroeconomic stability.
- Important policy actions:
  - adhere to the fiscal consolidation plan, supporting it with revenue mobilization;
  - address the infrastructure gap, without increasing fiscal risks;
  - enhance the social security system by increasing coverage and improving equity, and containing health care costs;
  - address remaining weaknesses in financial sector supervision;
  - foster financial inclusion.

---

## Content in this bundle

- **Cr14141**
  - [Cr14141 (Markdown version)](/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/scr/2014/_cr14141.pdf.md){rel="alternate" type="text/markdown"}
  - [Cr14141 (PDF)](/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/scr/2014/_cr14141.pdf){rel="external" type="application/pdf"}

---

_Source: https://www.imf.org/en/publications/cr/issues/2016/12/31/colombia-staff-report-for-the-2014-article-iv-consultation-41586_