Colombia’s Fiscal Plan Increases Uncertainty About the Country, Says Fitch Ratings

Portafolio.co

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The firm maintained that the adjustment of the expenditure envisaged in the plan would not begin until 2027, 'so it would be subject to electoral uncertainty'.

Bloomberg Linea

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Colombia’s new Medium-Term Fiscal Framework highlights the continued deterioration of the country’s fiscal situation and increases uncertainty about the prospects for corrective measures, says Fitch Ratings. The fiscal framework, published on June 13, raises the central government deficit target for 2025 by 2pp, to 7.1% of GDP, with subsequent increases of 1.4 percentage points (pp) for 2026 and 0.8 pp in 2027, to 6.2% and 4.9%, respectively.

Valora Analitik

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Fitch criticized the lack of detailed consolidation measures in the Fiscal Framework. Photo: Rodrigo Torres, Valora Analitik The rating agency Fitch Ratings said that the revisions to the previous deficit targets, the suspension of the Fiscal Rule for three years and the wide deviations from budgetary projections have affected the credibility of fiscal policy in Colombia. Following the publication of the new Medium Term Fiscal Framework (MFMP), …