Fall in the country’s fiscal deficit would depend on expenses in recovery

Colombia You may need additional measures to significantly reduce your debt indicators as of 2023, explained Richard Francis, an analyst at the firm Fitch Ratings.

(See: Risks in the Colombian peso generated by the next elections).

It is expected that the fiscal deficit in the country fall this year, although it will depend on how much the government spends to support the economic recovery, he added.

“Updated macroeconomic projections, and a stronger starting point, suggest scope for further fiscal outperformance compared to our existing forecasts in 2022“, he pointed.

(See: Raise US$6.2 billion abroad, the country’s objective in 2022).

The outperformance in 2021 fiscal deficits and debt metrics was largely due to GDP growth, which boosted gross receipts by nearly 19%.

Medium-term growth and fiscal prospects will be influenced by the 2022 elections, and policymaking will largely depend on the upcoming elections. presidential election and of Congress.

(See: Government increased economic growth forecast to 5% by 2022).

“No presidential candidate, including the current favorite, the leftist Gustavo Petro, is running on an anti-establishment platform.said the analyst.

“Congress seems likely to remain fragmented and largely centrist, requiring consensus building to pass legislation“, he commented.

(See: Duque’s criticism of the “sudden” rate hike made by Banrep).

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