Colombia: Arrangement Under the Flexible Credit Line—Staff Report; Staff Supplement; Press Release on the Executive Board Discussion; and Statement by the Executive Director for Colombia

IMF Staff Country Reports, July 10, 2013

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Canonical URL: Colombia: Arrangement Under the Flexible Credit Line—Staff Report; Staff Supplement; Press Release on the Executive Board Discussion; and Statement by the Executive Director for Colombia

This staff report highlights economic policies and development related to Colombia’s arrangement under the Flexible Credit Line.
Colombia’s economic performance in recent years has been described as "very strong," underpinned by "a very strong institutional framework and prudent macroeconomic management."
Following a sharp slowdown in 2008–2009, output growth "rebounded vigorously," and inflation "stayed within the official target range."
The report emphasizes that a very strong policy framework provided policy space to undertake timely and effective countercyclical measures to mitigate the effects of the global financial crisis, and that skillful policy management helped maintain strong growth with low inflation.

Policy framework components cited:
- an inflation-targeting regime
- a flexible exchange rate
- effective financial sector supervisionand regulation
- a medium-term fiscal framework
These components collectively provided policy space for countercyclical measures during the global financial crisis.
The report frames Colombia’s recent macroeconomic performance as a product of strong institutions and prudent macroeconomic management.

Subject: Central banks, Credit, Economic sectors, External debt, International reserves, Money, Public debt, Public sector
Keywords: Colombia, CR, Credit, deficit, executive board discussion, FCL arrangement, Global, International reserves, ISCR, policy buffer, policy strategy, Public sector, successor arrangement