IMF cuts Colombia 2017 economic growth estimate to 2.3 pct

IMF cuts Colombia 2017 economic growth estimate to 2.3 pct

IMF cuts Colombia 2017 economic growth estimate to 2.3 pct

Source : Pixabay/cathemayorga

Due to political uncertainty and economic crisis in the financial market, The International Monetary Fund on Friday cut its 2017 forecast for Colombian economic growth to 2.3 percent from 2.6 percent which is below government’s GDP target of 2.5 percent for this fiscal year. Talking to reporters, IMF official Jorge Roldos said, “Risks include episodes of financial volatility and further declines in oil prices that could reduce fiscal revenues and lead to currency depreciation and inflation, while political uncertainty, both global and local, could damage confidence and delay investment.”

Despite the country saw a growth of 3.1 percent in 2015, last year the rate fell sharply to 2 percent and the country’s central bank in December start to implement lower interest rates to stabilize the economy. However, Roldos added that there are still a certain space for Colombia to reduce the interest rates as the country continues to gradually adapt to a combination of internal and external shocks.

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