The risk rating firm Fitch Ratings maintained Colombia’s notes at BB+ with a stable outlook, which reflects the country’s macroeconomic and financial stability, the backing of an independent central bank with an inflation targeting regime and a floating exchange rate. free. However, Fitch highlighted that said notes andThey are framed by high, though declining, fiscal deficits, which have already resulted in relatively large increases in the debt and interest burden in recent years, as well as a high dependence on basic products and weaker external accounts.
(Read also: Board of the Bank of the Republic maintains its market intervention rate at 13.25%)
“The ratification of the country’s rating at BB+ stable perspective demonstrates the confidence on the part of the market and investors in the institutions that have been maintained in the country and in the economic policy being carried out by the National Government”, highlighted the Minister of Finance and Public Credit, Ricardo Bonilla.
The rating agency’s decision also took into account the country’s record in meeting debt and its obligations, which has a positive impact on the credit profile, since it shows its willingness to honor its commitments.
Also the commitment of the National Government to adhere to the fiscal framework, the updated fiscal rule and that the country has a strong institutional framework, which is reflected in the monetary policy and the system of checks and balances.
Construction of the bridge over the Ortegas River, Seguengue village in El Tambo, Cauca.
Time / Courteous
(It may also interest you: Brazilian GPA rejects Gilinski’s offer for Éxito, considering it too low)
However, in his report released this Friday, heThe entity said that the reform agenda in which the Government is seized seems uncertain due to the obstacles that have appeared in the procedures of these.
“His healthcare reform split the coalition and resulted in its collapse. As a result, Petro’s political ability to pass healthcare, pension and labor reforms has become more uncertain,” Fitch said.
In that sense, he said that political uncertainties are expected to remain during the next year, especially for the extractive industries. However, the Petro administration has pledged to adhere to Colombia’s fiscal and monetary framework, including central bank independence and the updated fiscal rule.
(Also: Can all energy consumption be met with wind and solar farms alone?)
The rating agency not only expects the economy to slow down this year to 1.5 percent, Rather, this dynamic continues to be mediocre (1.2 percent) in 2024, given the lagged impact of the restrictive monetary policy that will weigh on domestic demand and weaker global growth that will also negatively affect exports and oil prices.
“We think political uncertainty is likely to weigh on investment over the next couple of years. We expect growth to reach 2.8 percent in 2025, slightly below our assessment of potential, thanks to rate cuts and a rebound in the global,” the rating agency said in its report.
