Colombia: 2016 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Colombia

IMF Staff Country Reports, May 20, 2016

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Canonical URL: Colombia: 2016 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Colombia

This paper discusses key issues related to the Colombian economy.
Despite adverse global circumstances, Colombia’s successful policies and inclusive growth agenda continued in 2015.
Colombia’s strong policy framework helped ensure an orderly adjustment to the deteriorated external conditions.
Although the medium-term outlook is favorable, it is surrounded by downside risks.
The main near-term risks stem from Colombia’s still significant near-term external financing needs and potential capital inflow reversals, the result of volatile global financial conditions.
On the upside, bringing the peace process to fruition could further improve business confidence and capital inflows, reinforcing the recovery that will follow the necessary adjustment process.

Macro framework and adjustment
- Successful policies and inclusive growth agenda sustained in 2015.
- Strong policy framework enabled an orderly adjustment to deteriorated external conditions.
External position
- Near-term external financing needs remain significant.
- Potential for capital inflow reversals due to volatile global financial conditions.
Medium-term outlook
- Outlook described as favorable but surrounded by downside risks.
Upside scenario
- A successful peace process could bolster business confidence and capital inflows and reinforce recovery.

Monetary and Financial Conditions in Colombia
- Monetary and Financial Conditions in Colombia (Markdown version)
- Monetary and Financial Conditions in Colombia (PDF)