Colombian economy is projected to expand by 1.8% by 2024

In 2024, the government projects that the country’s economy will grow by 1.8%. It also anticipates inflation to fall to 5%. This will allow the central bank to lower its key interest rate to 8%. According to Ricardo Bonilla, the country’s GDP growth for 2023 will be at 1.2%.

The fourth-largest economy in Latin America sputtered during the previous year, with inflation remaining high at 10.15%. According to Bonilla, the region’s economy is expected to grow at a rate of 1.8% in 2024.

According to Bonilla, inflation is expected to reach 9.5% in 2023, which is significantly lower than the previous year’s 13.12% but still higher than the bank’s 3% objective. A Reuters poll conducted last week revealed that most experts expect inflation to reach 9.43% in 2023. Although the central bank has set a 3% target for inflation in 2024, Bonilla noted that it would not be able to achieve this objective in 2025.

Bonilla noted that inflation is expected to reach 9.5% in 2023, which is significantly lower than the previous year’s 13.12% but still higher than the bank’s 3% objective. A Reuters poll conducted last week revealed that most experts expect inflation to reach 9.43% in 2023. He said that inflation would continue to decline and that it would not be possible to achieve the bank’s 3% target in 2024.

Bonilla noted that the country will be able to achieve its inflation objective in 2025, which would allow the bank to reduce its key interest rate by half a percentage point. The government will also hold talks with business groups about the proposed changes to the country’s fiscal reform, which was passed early last year. According to the minister, the proposed changes to the tax structure would be presented to Congress for its approval.

Since implementing the country’s first fiscal reform in early last year, the government has been struggling to carry out various projects related to the health, pension, and work sectors. Bonilla noted that the government is only open to discussing the implementation of the new fiscal rule, which imposes a limit on the country’s fiscal deficit.

The country’s fiscal deficit was expected to reach 4.3% of gross domestic product in 2023. To boost investments, the government will seek new international partners to participate in its debt and loan operations.