Colombia has maintained a robust economic performance in recent years due in large part to its very strong policy framework. Well-anchored inflationary expectations, a flexible exchange rate, a structural fiscal balance rule, and effective financial supervision and regulation have contributed to...

Colombia has a strong fiscal framework that prescribes a prudent, albeit challenging, fiscal consolidation over the medium term. A number of changes have taken place over the past decade and a half to strengthen Colombia’s fiscal framework, including the introduction of a structural balance...

Colombia’s economy has been resilient to the adverse global shocks of recent years. Inflation has been subdued, credit growth has eased, and financial soundness indicators are strong. The strong balance of payments continues to put upward pressure on the Colombian peso. In 2013, growth is...

Colombia's very strong policies and policy frameworks have helped to significantly reduce domestic and external imbalances and brought the economy to more sustainable levels of activity and demand. Market confidence has improved, but risk premia remain high compared to peers. The authorities...

With the sharp growth slowdown in 2023 from an overheated post-pandemic recovery, the Colombian economy has reached more sustainable levels of economic activity and domestic demand, with a marked reduction in domestic and external imbalances owing to appropriately tight macroeconomic policies....

This paper presents Colombia's Review under the Flexible Credit Line (FCL) Arrangement. Colombia has very strong economic fundamentals and policy frameworks anchored by a credible inflation targeting regime, a solid medium-term fiscal framework, a flexible exchange rate, and effective financial...

This Selected Issues paper focuses on the impact of fiscal and monetary policies on inflation in Colombia. Colombia, as many other emerging market economies, has been particularly susceptible to shocks that pushed inflation above central bank targets and lowered growth. Following a series of...

This 2023 Article IV Consultation highlights that the Colombian economy is now undergoing a necessary transition toward a more sustainable growth path. Macroeconomic policies that had been tightened last year and are expected to carry on this year are facilitating this transition, along with a...

Colombia's very strong policy frameworks and comprehensive policy response to the pandemic have supported the economy's resilience. With stronger-than-expected growth last year, fiscal deficits and public debt are declining faster than anticipated, and the fiscal framework has been reactivated...