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Members commended Colombia on the positive macroeconomic developments since the previous review in 1990 as well as the legislative, policy and institutional reforms, including the liberalization of the foreign trade, exchange and investment régimes. These had been reflected in solid economic growth, a decline in the rate of inflation, strong capital inflows and improved public finances. Concern was expressed that recently, there appeared to have been some economic slowdown and slight increase in inflation. Questions were posed with respect to: the frequency of tax changes; the impact of the anti-inflationary Social Pact; possible increases in public expenditure arising from social spending under the Development Plan; fiscal and structural implications of the privatization programmes; the compatibility between constitutional provisions on expropriation and new laws guaranteeing investors' rights; the possible impact of oil revenues and oil-related investment on the economy, including the operation of the Oil Stabilization Fund; and the social costs of the adjustment programme. Questions were also posed on the stage of implementation of various legislative reforms.
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