2024-09-22 20:00:20
Finance Minister Ricardo Bonilla expressed optimism regarding the evolution of the Colombian economy, announcing a new economic growth projection for 2024.
According to the most recent estimates, the country’s economy is expected to close the year with growth of more than 2%, driven by the good performance recorded in recent months.
The Economic Monitoring Indicator (ISE) for July showed a growth of 3.68%, which reinforces the optimistic projections of the Ministry of FinanceSpeaking at the 16th Annual Energy Congress, organized by the Colombian Association of Electric Power Generators (Acolgen), Bonilla highlighted that the Bank of the Republic has been adjusting its forecasts upwards. Initially, the growth projection for 2024 was 0.9%, a figure that rose to 1.4% three months ago and to 1.8% recently.
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Bonilla also referred to monetary policy, noting that while interest rates have decreasedthe reduction has not been as fast as expected. The Bank of the Republic has reduced its intervention rate by 250 basis points in the last 17 months, while inflation has eased. The minister urged to speed up the process, highlighting that to reach an intervention rate of 8.5% by the end of the year, the Board of Directors of the Bank should reduce the rate by 75 basis points during the next three meetings.
Another of the issues addressed by Bonilla was the deficit of the Fuel Price Stabilization Fund (FEPC), which currently amounts to $11.6 billion. He explained that payments to Ecopetrol are being made one year late, and that to date the $20.5 billion corresponding to the end of 2023 are being paid. The minister announced that the debt for the third quarter of 2023 will be settled on September 30, while the obligation for the fourth quarter will be settled in December.
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