The IMF issued a press release on 29 May 2015 following the conclusion of discussions with Colombia under Article IV of its articles of association.
Real GDP grew at a rate of 4.6% in 2014 but is expected to slow to 3.4% in 2015 owing to the subdued outlook for investment especially in the oil industry. The government has continued to improve the fiscal policy framework and strengthen the social safety net. The current account deficit is expected to widen in 2015 owing to the decline in the oil price but will begin to narrow in the medium term with an expected slight recovery in oil prices and with economic growth in trading partners, especially the US.
The IMF emphasizes the need to mobilize non-oil revenues to protect social and infrastructure spending while meeting fiscal targets. This objective requires a comprehensive tax reform to simplify the tax structure; increase the progressivity of the tax system; create a broader tax base and increase the effectiveness of tax administration. An expert commission has been established by the Colombian government to review these issues and make recommendations.
In the financial system the IMF welcomed the efforts to address cross-border risks and strengthen the regulatory and supervisory framework. Further efforts are required to increase the resilience of financial institutions and strengthen supervision of financial conglomerates. Key priorities for the wider economy are to reduce the informality in the economy, improve competitiveness and infrastructure and increase opportunities for social mobility. The IMF also supports initiatives to promote private participation in the economy.