Colombia Raises 2020 Deficit Target due to Pandemic Effects on Economy

In June Colombia’s Fiscal Rule Advisory Committee unanimously agreed to suspend deficit limits until 2022 to give the government more space to meet the fiscal needs created by the pandemic.

RIO DE JANEIRO, BRAZIL - Colombia on Friday, November 13th, raised its fiscal deficit target for 2020 to 8.9 percent of gross domestic product (GDP) and said it expects the economy to contract 6.8 percent due to the impact of the coronavirus pandemic.

The government had previously sought to maintain its fiscal deficit at 8.2 percent for 2020.

The forecast economic contraction is greater than a previous estimate of 5.5 percent, and near the higher end of a projected range given on Thursday by Finance Vice-Minister Juan Pablo Zarate, who said the economy was expected to . . .

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