Colombia: 2024 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Colombia

The 2024 Article IV Consultation shows that with the sharp growth slowdown in 2023 from an overheated post-pandemic position, the Colombian economy has reached more sustainable levels of economic activity and domestic demand. Market confidence has improved, but risk premia remain high compared to peers. Risks to the outlook have improved but remain elevated and to the downside. Maintaining the track record of very strong policies would continue to help support Colombia’s capacity to respond to shocks. While important gains have been achieved in reducing imbalances, policies should aim to durably eliminate them while facilitating a smooth convergence of the economy to potential levels. This will require continuing to gradually normalize macroeconomic policy stances and advancing on the structural reform agenda to boost productivity, encourage investment, and diversify the economy. The broad objectives of the administration’s equity and climate agenda are welcomed.