US embassy cable - 04BOGOTA4511

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IMF VISIT TO COLOMBIA

Identifier: 04BOGOTA4511
Wikileaks: View 04BOGOTA4511 at Wikileaks.org
Origin: Embassy Bogota
Created: 2004-05-04 15:30:00
Classification: UNCLASSIFIED//FOR OFFICIAL USE ONLY
Tags: ECON EFIN ELAB PGOV CO
Redacted: This cable was not redacted by Wikileaks.
This record is a partial extract of the original cable. The full text of the original cable is not available.


 
UNCLAS BOGOTA 004511 
 
SIPDIS 
 
SENSITIVE 
 
E.O. 12958: N/A 
TAGS: ECON, EFIN, ELAB, PGOV, CO 
SUBJECT: IMF VISIT TO COLOMBIA 
 
 
1.   (SBU) SUMMARY: Commending the Government of Colombia 
(GOC) on its impressive growth over the last year, the 
International Monetary Fund (IMF) found that the short term 
outlook for Colombia is positive and expects the Colombian 
economy to meet revised macroeconomic targets.  The positive 
macroeconomic growth seen over the last year reflects the 
strong policies of the Uribe administration, but the work 
toward a stable, sustainable economic situation in Colombia 
is not yet finished.  Structural reforms decided upon in the 
IMF-Colombia Stand-by Agreement two years ago must pass if 
economic growth is to continue in the long run.  END SUMMARY 
 
2.   (SBU)  The IMF delegation's third review of the Stand-by 
Agreement, which Colombia signed two years ago, commended 
Colombia on its positive economic growth and applied pressure 
for reforms.  The IMF was impressed by the GOC,s GDP growth 
(3.5 percent), fiscal deficit reduction (2.8 percent of GDP) 
and inflation stabilization (6.49 percent) over the past 
year. In addition, the IMF commended the Central bank for its 
handling of monetary policy.  In light of the positive news, 
the IMF announced that it had adjusted its growth 
expectations for Colombia in 2004 up to 4 percent GDP from 
3.3 percent.  In addition, the IMF expects that the GOC will 
meet its public fiscal deficit target of 2.5 percent of GDP 
(down from 2.8 for 2003) and that inflation will remain under 
control. 
 
3.    (SBU)  Although the economic data paints a bright 
picture, the IMF acknowledged that these successes could be 
fleeting if the GOC did not continue structural reform by 
passing budget code and pension reforms.  The IMF team, 
recognizing the tough legislative fight ahead, expressed some 
concern that other issues (such as re-election) might 
distract the GOC.  They urged the GOC to focus on passing 
these reforms. 
 
WOOD 

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