Tendencia Económica. Informe Mensual de Fedesarrollo. No. 197

Abstract

In this editorial, we analyze the Medium Term Fiscal Framework 2019 around three subjects: (i) the introduction of methodological changes in the definition of fiscal deficit, (ii) the estimated impact of the electronic invoice in the collection and (iii) ) the adjustment of public spending at 1% of GDP between 2019 and 2022. We also present our medium-term fiscal estimates, updated with the latest figures available. The differences in the projections presented by Fedesarrollo and the MFMP 2019 indicate that the fiscal uncertainty remains in the medium term and that the national government would have to take additional policy measures to comply with the deficit targets required by the fiscal rule.

In this Actualidad article, we provide a brief description of the process Colombia made to enter the OECD and the benefits other developing countries experienced, on economic growth and foreign direct investment, after they gain their access to this organization. Taking this into account, we identified two main challenges for Colombia, one year after the OECD endorsed our affiliation. First, the Government must continue the institutional reforms settled during the admission process. Second, Colombia should position itself an active member of the organization in order to benefit from the constant policy feedback.