Oecd revises down the growth of the colombian economy – Portfolio.co

The Organization for Economic Cooperation and Development (Oecd) revised down its economic growth forecasts for Colombia, that you should stay at 2.1% this year and 2.5 % the next, before climbing to 2.9% in 2018.

In its semi-annual report of prospects, the Oecd gave a support clear and explicit to the fiscal reform of the Government of Juan Manuel Santos, whose approval in the Congress considered to be "crucial" in order to raise government revenues, stimulate the activity and address the "societal challenges" of the country.

(Read also: The benefits that you will get Colombia to join the Oecd).

the authors of The study corrected the figures about Colombia that had been given in June last, as they now expect an increase of the gross domestic product (GDP) by three tenths of a point lower in 2016 and five tenths less than in 2017, to account, essentially, from the external environment.

In this regard, they noted several items of concern such as the weakness of international trade, uncertainties about the monetary policy in the united States (it is expected a rise in interest rates) or possible evolutions "adverse" in other emerging economies, in particular China and Brazil, which could increase financial volatility and lower capital flows.

In any case, the Oecd stressed that the activity should be strengthened in the next two years, of the hand of an external demand for higher and a recovery in agricultural production after the end of the episode "The Child".

Other elements encouraging are the recent recovery of oil prices and the recovery of investment (after the fall of 1.8% in 2016, should advance 2.2% in 2017, and 2.9% in 2018).

known as the "Club of developed countries" -to which Colombia is in the process of enter – stated that the fiscal adjustment that has taken place the Government of Juan Manuel Santos should continue to "to maintain credibility".

that’s why he supported tax reform, necessary in his view to raise incomes, reduce dependence on the oil market, and meet a series of social and economic needs.

The Oecd said that in the medium term, key reforms have to aim to reduce the informality of the labour market, raise the tax on the income, to promote the financial inclusion of the population and a sustained increase in public investment.

EFE