The International Monetary Fund (IMF) praised economic reforms in Colombia in the areas of health care, pensions and the labor market, and stressed that they must be carried out “prudently and at the same time maintain fiscal and financial stability”.

The Colombian economy, which grew by 7.5 percent in 2022, has recovered ‘remarkably’ from the COVID-19 pandemic and is transitioning toa more sustainable growth trajectory”according to the IMF.

Colombian President Gustavo Petro repeated the statement on his Twitter account in which the IMF “Supports social reforms” and “government economic policy,” which, according to the IMF, had a restrictive stance last year that will continue into 2023, facilitating the growth transition.

They also calculated that a slowdown in global growth and higher borrowing costs around the world, together with a cooling of its economy, would allow inflation to reach the level set by the Central Bank at the end of 2024, which also reduce the deficit to 4 percent of gross domestic product (GDP). approximately.

They also urged the authorities to continue their program. anti-corruption.

The IMF also appreciated the fact that Colombia offered itself as a target reduce its dependence on oil and coalThey indicated that to do this, they need a phased plan that “combines the energy needs of the national economy and its ability to generate foreign exchange with the transition of the world economy to a low-carbon economy.”

While Colombian economic fundamentals and policies are solid and improve both equity and social inclusionthe organization warned that downside risks are “prevailing and rising” due to tightening global financial conditions, so domestic dangers cannot be ruled out.

IMF directors “welcome favorably” the fiscal adjustment in 2022 and the adjustment planned for 2023 to strike a balance between deficit improvement and increase in social spending, and called for the phasing out of fuel subsidies as they could lead to “skewness”.