After a turbulent 2022 on economic issues, 2023 does not look calm at all and there are already several calls and requests that have been made from different sectors to carry out joint work to help keep the Colombian economy afloat.
From the National Association of Entrepreneurs of Colombia (Andi) they assure that uncertainty, volatile markets, economic slowdown and high inflation that was lived in 2022, both in the country and in the world, will be maintained for 2023.
(See: Inflation in Colombia goes ‘without brake’: why doesn’t it go down?).
“It is inevitable that this will impact the country’s growth. Thus, the GDP growth projections for this year range between 0.5% and 2.2%. A low figure in any case and in Andi we project the data around 1%“, he claimed Bruce MacMaster, president of the entity.
So, how does this year look for the country and what to do to maintain employment?
Mac Master affirms that, in a perspective that covers 15 years, “Colombia is, in terms of growth, above the world economy, advanced economies and Latin America”, for this reason, he adds, the country looks like economy with growth potential and attractive for investment, “an asset that we cannot lose”.
Bruce MacMaster, president of the Andi
The manager says it is important recover the trend of stability indicators close to international parameters, of which Colombia moved away in 2020, 2021 and 2022 with historical data, such as inflation (13.12% for 2022).
(See: Deadlines for declaring and paying income, VAT and other national taxes).
“It is common to measure macroeconomic vulnerability by tracking twin deficits. At the end of 2022, the fiscal deficit would have been 5.6% and the current account deficit reached 6%. Undoubtedly, imbalances of this magnitude are not sustainable in the medium term.“, held.
and made a call for the public sector does not borrow indefinitely.
(See: The negative effects of reducing contracts for the provision of services).
“The payment of imports, foreign debt service and capital flows abroad require solid sources of resources, such as exports or direct foreign investment. It adds to the impact of the tax reform on investment, the business sector and the energy miner. Part of the economic stability will depend on the use given to the resources from this reform”, he stated.
Part of the economic stability will depend on the use given to the resources from this reform
The challenges in terms of employment
With a clear picture of what 2023 will be like, Mac Master asserted that low growth is a threat to job creation and recalled that, in recent times, the recovery of jobs was possible thanks to “the best strategy, which is to promote economic growth”.
(See: Self-determination theory: how is the way to achieve goals).
“The discussion and the result of the labor reform is very important. Any reform must have among its objectives generating employment and reducing informality. The concerted 16% increase in the minimum wage was, in our opinion, a necessary measure to recover the purchasing power lost by households given inflation, especially those with low incomes, for whom the CPI will be 14.5%, without However, it is still a challenge for the generation of formal employment”.
Finally, he said that The great anguish of 2023 will be the extremely high level of poverty and inequality.
Poverty in Colombia.
“In the social sphere, the challenges demand timely and fast actions. Although the labor market has improved, a double-digit unemployment rate is high, poverty levels close to 40% are unacceptable, and a path to reduce inequality is lacking”.
(See: ILO recommends expanding employment with flexible work hours).
BRIEFCASE
