Colombian Finance Minister German Avila has stated that the country will not compromise its economic activity to strictly adhere to the fiscal rule. Speaking at a banking conference in Cartagena, Avila emphasized that paralyzing the economy is not a viable solution. The government is considering measures such as increased borrowing and adjustments in spending to maintain economic growth. Temporary suspension of the fiscal rule, which was established in 2011 to safeguard public finances, may be on the table. This decision will be discussed by the Superior Council for Fiscal Policy, which oversees the nation’s budget and fiscal policies. Any suspension could unsettle markets already concerned about President Gustavo Petro’s economic strategies.
— new from Reuters