The latest report released by Credito y Caucion predicts that Colombia will maintain solid growth in 2019 and in 2020, around 3%, driven by the growth in oil prices, investments and consumption, in a context of stable growth. inflation in the target range of the central bank. The report highlights the good prospects of the mining industry, which should maintain steady growth in the coming years, supported by the competitiveness of coal exports and the growth of gold production.
In a context of reduction of corporate taxes, the control of the deficit led the Colombian Administration to increase the tax burden on higher incomes and to adopt measures against tax evasion. However, there has been no increase in indirect taxes on basic foods. The report points out that it remains to be seen if Colombia will be able to meet its fiscal objectives, which aim to reduce the deficit to 2.4% of GDP in 2019 and to 1% by 2027. Colombia maintains easy access to international capital markets and a solid liquidity position, with international reserves that cover ten months of imports.
"Despite significant economic progress in recent years, Colombia still maintains high rates of poverty and inequality, especially in rural areas. To achieve sustainable economic growth in the long term, it would be necessary to encourage employment growth, social reforms and the improvement of infrastructures, "says the report.