At the helm of one of Latin America’s more stable economies at the moment, Juan Manuel Santos, President of Colombia met with Christine Lagarde in Washington, D.C., this month.
Ms. Lagarde, Managing Director of the International Monetary Fund (IMF), issued a statement after their meeting.
“I had a very productive and positive discussion with President Santos today. We took stock of recent developments in the global economy, including lower oil and commodity prices, and their implications for the overall prospects for Latin America and Colombia.”
She added: “Colombia’s economic performance remains solid. I commended the government’s policy response to the sharp drop in world oil prices by strengthening fiscal policy more than required … while allowing the exchange rate to depreciate. Finally, I congratulated the President for his unwavering commitment to conclude the peace process, which would enhance the climate for investment and growth, especially in rural areas.”
Moody’s Investors Service as of January 2016 holds The Government of Colombia (Baa2 stable) is facing a challenging year as the price of oil continues to slide, says the global ratings agency.
Oil has played an important role in Colombia‘s economy in recent years. The commodity accounts for about 50 percent of all exports and generated on average about 14 percent of government revenues in the period 2010 to 2014, according to the report “Government of Colombia; Oil Prices, Lower Growth Pose Challenges to Fiscal Adjustment” published by Moody’s January 21st, 2016.
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