Colombia’s economy is expected to grow 5% in 2022, up from the government’s previous estimate of 4.3%


Band Nelson Bocanegra and Carlos Vargas

BOGOTA, February 4 (Reuters)Colombia’s economy is expected to grow by 5% this year, the country’s finance ministry said on Friday, raising its previous estimate of better growth in industry and retail trade.

The government had previously forecast a 4.3% expansion in 2022.

The ministry also revised its deficit target for 2022 down to 6.2% of GDP, from 7% of GDP previously, thanks to an increase in tax collection, Finance Minister Jose Manuel Restrepo said during a meeting. a video presentation.

Restrepo said tax revenue would increase this year to 183 trillion pesos ($46.3 billion), from an initial estimate of 169 trillion pesos, thanks to a reform passed last year and more efforts to combat tax evasion.

Colombia will issue 75.9 trillion pesos ($19.2 billion) of public debt this year, up from 102 trillion pesos previously forecast.

Some 52.2 trillion pesos of that debt will come from local TES bonds, he said, while the Andean country will issue $6.22 billion in foreign bonds.

Restrepo did not give an estimate of inflation figures this year, but said the government was in line with the central bank, which forecast consumer price growth of 4.3% this year.

Nor did he offer an updated estimate of the current account deficit.

The government of President Ivan Duque, whose term ends in August, is not considering further privatizations of state assets this year, Restrepo said, despite a previous estimate that such deals could bring in $7 trillion. pesos in 2022.

The country recorded a budget deficit of 7.1% of GDP in 2021, according to initial calculations, lower than the previously estimated 8.6% of GDP.

($1 = 3,951.96 Colombian pesos)

2022

Revised 2022

GDP

4.3%

5%

Central government deficit (% of GDP)

seven%

6.2%

Current account deficit (% of GDP)

3%

Not given

Average peso/dollar

3,744

3,823

Tax revenue target (trln pesos)

169

183

Foreign bonds (USD billion)

NOTnot given

6.22

Local TES bonds (trln pesos)

62.88

52.22

TES auctioned (trln pesos)

45

36

Average oil price per barrel (USD)

63

70

(Reporting by Carlos Vargas and Nelson Bocanegra Writing by Julia Symmes Cobb Editing by Alistair Bell)

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