Member access

4-Traders Homepage  >  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: You are invited to include this Internet link in coverage.

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

distributed by
Recommend :
React to this article
Latest news
Date Title
<1m ago ASIA MEDIA BHD : Tour of growing Chengdu opens eyes for reporters
<1m ago HEFEI RONGSHIDA SANYO ELECTRIC : Exporters stuck in neutral as costs rise, demand stagnates
<1m ago TENCENT : Alibaba IPO a caveat for regulators
2m ago KEPPEL : SGXNET: Request for Trading Halt
2m ago SCHWEIZERISCHE NATIONALBANK : Monetary policy assessment of 18 September 2014
2m ago AVEVA : Leading Russian water company selects AVEVA for advanced 3D modelling
2m ago DAILY MAIL AND GENERAL : *exane bnp cuts daily mail price target to 950 pence - 'outperform'
2m ago HARDIDE : Says Full-Year Results Are Set To Beat Market Forecasts
3m ago TATE & LYLE : *exane bnp raises tate & lyle to 'neutral' ('up') - price target 700 (590) pence
5m ago MARIANA RESOURCES : Shares Rise On Acquisition Of Canada's Aegean Metals
Latest news
Hot News 
DIXONS CARPHONE : Phones 4u buyers still sought, but 800 jobs safe
10 OF THE BEST ; Sports bras
INFRANOR INTER : 18.09.14 - The Boards of Directors of Perrot Duval and Infranor sign a merger agreement
DEUTSCHE POST : Sep 17, 2014: DHL expands multimodal rail service in China
TESSENDERLO : Chemie proposes a rights offering
Most Read News
1d ago APPLE : Bug delays Apple's HealthKit availability on iOS 8
1d ago JOHNSON & JOHNSON : First Bellwether Trial in the DePuy Orthopaedics Pinnacle Hip Device Litigation Continues in its Third Week, Parker Waichman LLP Comments
1d ago AECOM TECHNOLOGY : Hotel design: why is localization important for Int'l brands?
1d ago CERUS : Submits IDE Supplement to Make INTERCEPT Platelets Available Pre-Approval in U.S. Areas at Risk from Outbreaks of Chikungunya and Dengue
1d ago UNITED TECHNOLOGIES : Carrier : Wins Patent Infringement Case for Innovative Infinity® Technology
Most recommended articles
10m ago China sticks to targeted support as leaders work on reform
15m ago BAYER : to float plastics, focus on life sciences
17m ago BANK OF CYPRUS PUBLIC : sells UK loan portfolio
18m agoDJCURRENCIES : Dollar Extends Gains; Pound Wobbles As Scots Go To Polls
20m ago PETRA DIAMONDS : may pay dividend sooner as core profit jumps
Dynamic quotes