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Published on Friday, April 25, 2025

Colombia | Timeliness and clarity of tax messages

Summary

Colombia aims to cut its fiscal deficit to 5.1% of GDP in 2025, but success depends on swift institutional reforms, clear spending plans, and transparent financing. In a volatile global context, timely and credible messages are key to maintaining investor confidence.

Key points

  • Key points:
  • The government aims to reduce the fiscal deficit from 6.7% to 5.1% of GDP in 2025, but this target relies on rapid improvements in institutional efficiency and timely decisions.
  • Clear announcements are needed regarding actual spending plans for 2025, including potential budget cuts or deferrals, to align expectations with fiscal realities.
  • The recent international bond issuance is a positive step in securing external financing amid heightened global volatility.
  • Cash management strategies must be communicated transparently to avoid negative market perceptions stemming from low Treasury deposits at the central bank.
  • Transparent and timely fiscal messaging enhances trust among investors and rating agencies, giving the country greater room for maneuver in uncertain times.

Geographies

Documents and files

Audio (MP4)

Timeliness and clarity of tax messages

Spanish - April 25, 2025

Press article (PDF)

Timeliness and clarity of tax messages

Spanish - April 25, 2025

Authors

JT
Juana Téllez BBVA Research - Chief Economist
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