Wednesday, April 24, 2024

Logo Central America Link

Morgan Stanley sees Colombia forfeiting growth

Monday, February 8, 2016

Colombia needs to keep increasing interest rates and cut government spending, even if it means sacrificing economic growth, to cope with the drop in prices for its biggest export, oil, according to Morgan Stanley.

“Mounting signs of stress” are appearing in Colombia as the almost 70 percent drop in crude over the past two years swells the current-account deficit, fuels inflation by causing a tumble in the peso, and pressures fiscal accounts, the bank said in a report on Friday.

Fuente: Bloomberg