Special Release 18-03-2019: Venezuelan migration shock in Colombia and its fiscal implications | Spanish version
Since 2000, the quality of life of Colombians has improved markedly. Macroeconomic and social policies have sustained strong GDP growth and reduced poverty. Between 2002 and 2015 the poverty rate fell from 50% to 28%, and extreme poverty fell from 18% to 8%. In terms of wellbeing, life satisfaction is now above the OECD average, although incomes, education and life expectancy still fall short. Reforms have reduced informality and improved the business environment. The peace agreement will further boost economic growth and wellbeing over time.
Broadening access to quality education is essential for boosting productivity and reducing large income inequalities. A comprehensive strategy to fight informality, which has fallen but remains very high, is required to boost productivity and inclusiveness.
Economic growth will strengthen to around 3.5% in 2019 and 2020, as lower corporate taxes boost investment. Low inflation and interest rates will support consumption. With demand-driven growth and weak export performance, the current account deficit will widen.