Daily Times (Pakistan) | 4/13/2009 12:00:00 AM
ECONOMY: The Colombian case
Apr 13 -- The government did not set aside resources while things were going well, and now it does not have the fiscal space needed for an aggressive boost to public spending of the type that many other governments are attempting. Although Colombia’s government has announced a strategy based on important infrastructure work, its impact will be limited
Just five months ago, Colombia’s government was assuring its citizens that they were protected from the international crisis. Now, analysts predict that the economy will barely grow 1 percent this year, and that is the best-case scenario. This bleak forecast marks the end of Colombia’s longest cycle of growth in three decades, leaving the country in the same fragile situation as that of many other developing economies.
Of course, a deteriorating economy is not exclusive to Colombia. Since the middle of last year, the International Monetary Fund has been reducing its projections for growth across Latin America. Last October, the Fund estimated that growth in the region would reach 3.2 percent this year; now, it says that growth will barely be positive.
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