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IMF Sees Colombia
Staging Economic Recovery In 2009
WASHINGTON (Dow Jones)--Colombia's economy should
stage a recovery in the second half of the year and
return gradually to a path of sustained growth, an
official from the International Monetary Fund said
Friday.
"A recovery is expected for the second half, as the
global economy starts to pick up and countercyclical
policies take effect," Marco Pinon, advisor in the
IMF's Western Hemisphere department, said following
a mission to Bogota for a semi-annual visit.
Inflation will also likely fall to around 4% due to
weak demand and the pullback in food prices, he
said.
Colombia's economy contracted 0.6% in the first
quarter, while annual inflation has fallen to 4.77%
through May from 7.67% at the end of 2008.
Pinon praised Colombian authorities for their
response to the global crisis, by securing external
financing early on, easing monetary policy and
allowing automatic fiscal stabilizers to work.
"Looking into 2010 and the medium term, staff
believes that Colombia should be in a position to
gradually resume sustained growth, and reduce its
fiscal deficit and public debt," he said.
The government should take advantage of any
improvement in global growth or commodity prices to
further strengthen fiscal policy, he added.
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