Challenging global and regional scenario for Colombia

Summary

As a small economy, Colombia is not immune to the reality of the global context. Short- and medium-term scenarios can be affected by exchange rate volatility, weakening investment, fiscal deficit, current account deficit and informality in the labor market.

Key points

• Key points:
• A more negative global environment weighs on the price of oil and global trade.
• The exchange rate can hardly be explained based on fundamentals, such as oil and risk premiums.
• In the medium term, it is necessary to achieve an adjustment in external and fiscal accounts and advances informality and infrastructure that tend to improve productivity.

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