Log in
Login
Password
Remember
Lost password
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 

4-Traders Homepage  >  News

News

Latest NewsCompaniesMarketsEconomy & ForexCommoditiesHot NewsMost Read NewsRecomm.Business LeadersVideosCalendar 

OECD - Organisation for Economic Co-operation and : Colombia's economic outlook is strong, but deep challenges remain, OECD says

01/31/2013 | 02:45pm US/Eastern

31/01/2013 - The Colombian economy is strong and the outlook is promising, but the country must do more to ensure that the ongoing commodities boom contributes to sustainable and inclusive growth over the long-term, according to the OECD's latest Economic Assessment of Colombia.

The Assessment, presented today in Bogota by OECD Deputy Secretary-General and Chief Economist Pier Carlo Padoan, Colombian Minister of Finance and Public Credit Mauricio Cardenas and Central Bank Governor Jose Dario Uribe, details the significant economic reforms enacted in recent years and their role in the country's resilience to the global economic crisis. It also highlights the key challenges facing Colombia as it seeks to bring about higher and more balanced economic growth - notably the need to adjust to the commodities boom, boost productivity and reduce income inequality.

"Commodity exports are booming, improved security is attracting new investment and confidence is on the rise, but there is still more to be done," Mr Padoan said. "The challenge is to ensure that the benefits of today's mining boom pays forward a better future for the next generation."

The OECD identifies  priority areas for action:

Adjusting to the commodity boom. The mining boom has triggered large swings in the real exchange rate and undermined the competitiveness of other tradable sectors - a well-known condition facing natural resource exporters known as "Dutch disease." Colombia has already enacted important reforms - including a credible inflation targeting regime, strong bank supervision, consolidation of public finances and a new royalty law - but additional adjustments would be welcome. Effective implementation of the new royalty law can result in more viable projects. Mining revenues can be used to fund improvements to the education system and the creation of high-quality infrastructure, both of which will improve Colombia's competitiveness. Promoting greater openness to trade, stronger competition and flexibility across the economy, in particular through labour market reforms, are important additional steps.

Reducing income inequality. Colombia faces high levels of income inequality and poverty, both of which are largely driven by unemployment and informality. Labour market reforms are needed to boost job creation and reduce the share of informal workers. This will require better educational outcomes and the reform of restrictive labour market regulations. The minimum wage should be differentiated by region, while  the high level of social security contributions and parafiscales, which  work against formal job creation, should be reduced. The tax system could also be made more progressive, through removal of exemptions that largely benefit the richest taxpayers. Raising additional revenues would also allow for the expansion of social programmes.

Boosting productivity and implementing further reforms to ensure sustainable growth. Government policy should seek to promote productivity across the economy, notably through the education and training system. Policies are also needed to further improve transport infrastructure, grow private investment, reduce barriers to entrepreneurship, improve access to finance and strengthen the rule of law, to ensure better contract enforcement and less corruption.

Further information on the Economic Assessment of Colombia is available at: www.oecd.org/eco/surveys/colombia2013.htm. You are invited to include this Internet link in coverage.

Journalists seeking further information should contact the OECD's Media Division: news.contact@oecd.org, +33 1 45 24 97 00.

distributed by
React to this article
Latest news
Date Title
04:53a NEUROSEARCH A/S : H1 report 2015
04:51a SITO MOBILE : chief to ring market closing bell Thursday
04:51a 1ST SOURCE : to host Shredder Day September 12 in Chesterton
04:51a RIVERVIEW BANCORP : announces new Director
04:51a UNITED COMMUNITY BANKS : expects to close Palmetto bank merger Tuesday
04:51a BOC HONG KONG () : 2015 interim results reach a new high with profit attributable to the equity holders of HK$13,387 million
04:51a F N B : First National Bank promotes Donatelli to lead Pittsburgh region
04:51a PRESIDIO : Bank sets preferred stock redemption date
04:51a SVB FINANCIAL : Modernizing Medicine Secures $10MM Credit Facility from Silicon Valley Bank
04:51a UNITED BANKSHARES : Declares Third Quarter Dividend
Latest news
Advertisement
Hot News 
FIDIA : BoD approves the Half Yearly Report as at June 30, 2015
SALVATORE FERRAGAMO ITALIA : 2015 08 27 Press Release_1H 2015 Results
INMARSAT : Boeing-built Satellite Will Create First Global High-Speed Broadband Network; Third Inmarsat-5 satellite with new technology will allow global coverage
TREVI FINANZIARIA INDUSTRIALE : Results ended 30 june 2015
MEREDITH : StyleHaul Names Dick Porter as Chief Revenue Officer
Most Read News
08/30 Suzuki Motor says it will buy back VW stake as court settles feud
08/30 Politicians welcome Berri's call for dialogue
02:39a Cortendo Announces Filing of Registration Statement for Proposed Initial Public Offering
08/30 DATACENTRIX : Forward-thinking Western Cape government wins OpenText "Big Think" award
08/30 Tezzaron Announces World’s First Eight-Layer Active Wafer Stack
Most recommended articles
04:49aDJEVERGRANDE REAL ESTATE : 1st Half Net Profit up 33% at CNY9.43 Billion
04:44aDJAP MOELLER MAERSK A/S : Maersk Oil Gets U.K. Nod for $4.5 Billion North Sea Gas Project
04:41aDJMmc Norilsk Nickel Reports First Half 2015 -7-
04:40aDJThailand's Economic Conditions Remain Weak in July
04:37aDJMarkets End Turbulent Month Lower