Overview

  • President Iván Duque Márquez, began his presidential term on August 7th, 2018, and it will end on August 7, 2022. Duque, from the Democratic Center party, won the elections by achieving 53.95% of the votes (10,351,304 votes) while his rival Gustavo Petro reached 41.83% (8,024,697 votes). The main pillars of its government are legality, entrepreneurship, and equity, with transversal axes in terms of: infrastructure, environmental sustainability and innovation.

    Duque has insisted on austerity and responsibility in the management of public resources during his term. The new president will also present a tax reform to the congress that seeks to take effect on January of 2019.

    Colombia has weathered well the significant terms of trade shock faced over the 2014-2016 period. Economic growth decelerated gradually to an estimated 1.8 percent by 2017, with the soft-landing supported by sound macroeconomic policies and structural reforms undertaken in recent years. Over the last years the country underwent an important adjustment in the non-oil fiscal deficit in response to the decline in oil fiscal revenues of nearly 3.3 percent of GDP.

    Growth is expected to accelerate at a gradual pace over 2019-2020, supported by stronger private consumption, a gradual recovery of non-oil exports, higher oil prices, and a pick-up in the implementation of the 4G infrastructure program.

    Inflation has converged to the targeted range in early 2018. Well-anchored price expectations and weaker economic activity, prompted the Central Bank to reverse its monetary policy tightening, cutting the policy rate gradually by a cumulative 350 basis points to 4.25 percent by early January 2018. The policy rate has been kept at 4.25 percent since then.

    Colombia continues to maintain a solid macroeconomic framework. Key components of Colombia’s macroeconomic framework include the adoption of a full-fledged inflation-targeting regime, a flexible exchange rate, a Fiscal Rule (2011) for the central government, and a Medium-Term Fiscal Framework. The solid macroeconomic framework also helps build buffers and strengthen resilience to external shocks, facilitating external and domestic economic adjustment to potential shocks.

    The post-conflict reconstruction efforts could provide a boost to confidence, and support growth through increased investments, particularly in the agriculture and energy sectors. It would however also put additional pressures on spending, making continued fiscal consolidation efforts necessary.

    The government has showed commitment to fiscal discipline, complying with the fiscal rule instituted in 2012, which helped maintain its investment grade credit rating since 2013. Going forward the outlook depends on the country’s ability to address existing structural bottlenecks, sustain fiscal reforms, and diversify its economy to sustain higher productivity growth.

    Last Updated: Oct 04, 2018

  • The Country Partnership Framework (Fiscal Year 2016-21) aims to support the government's development goals and guarantee the quality of the World Bank Group's (WBG) financial, knowledge and convening services to respond to the specific development needs of Colombia. The program supports the government under three strategic pillars:

    •Fostering Balanced Territorial Development;

    •Enhancing Social Inclusion and Mobility through Improved Service Delivery; and

    •Supporting Fiscal Sustainability and Productivity.

    Colombia is IBRD’s 7th largest Bank borrower with US$10.3 billion in outstanding debt. The active portfolio includes 10 IBRD credit operations and 2 Global Environment Facility (GEF) projects, 1 project for low carbon sustainability in the Orinoquia and 1 Guarantee on Clean Energy Development with net commitments of close to US $ 2.07 billion.

    Colombia also has a considerable Trust Fund portfolio with US$102 million represented in a variety of sectors.

    Last Updated: Oct 04, 2018

  • Three IBRD were approved by the Board in FY18 totaling $702m: the Second Sustainable Development and Green Growth DPF, Enhancing Waterway Connectivity and Water Service Provision in Colombia’s Plan Pazcifico Project and an Additional Financing for the Access and Quality in Higher Education project. Also, a project for low carbon sustainability in the Orinoquia is included amongst FY19 deliverables thus far.

    Projects approved so far in FY19 include one Guarantee on Clean Energy Development approved mid-July 2018 and the first project in a series to support the Bogota Metro Line 1 approved in early August 2018.

    The Bank supports Colombian efforts to improve public sector management in municipalities to reduce poverty and inequity. It also supports urban public transport; the post-conflict and peacebuilding process (mostly through a multi-donor trust fund), as well as long-term natural disaster risk management and a disaster risk financing strategy, through the Treasury Bank

    The Bank is helping to strengthen the national protected areas in Colombia, through the coordination between government agencies and the local population.

    Over the past 15 years, more than half a million higher education students in Colombia, especially those from vulnerable socio-economic backgrounds, have benefited from World Bank investment projects and have been able to access quality education through partnership with World Bank. The Higher Education Quality Access Program (ACCES - Acceso con Calidad a la Educación Superior) and the recently approved Access and Quality Program for Higher Education (PACES - Programa de Acceso y Calidad de la Educación Superior), which will benefit some 287,000 students, focused on supporting students from unfavorable socio-economic contexts as well as indigenous, Afro-Colombians, students from remote areas, and victims of armed conflict.

    Last Updated: Oct 04, 2018

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Additional Resources

Country Office Contacts

COLOMBIA: (57) 1 - 3263600
Cr 7 # 71 - 21, Torre A, piso 16
jbedoyavilla@worldbank.org
USA +1 202 473-1000
1818 H Street NW, Washington, DC 20433, USA
jbedoyavilla@worldbank.org