The truth that the Petro government is not telling in the balances and analyses of the public debt in the Financial Plan
President Gustavo Petro Photo: Andrea Puentes, Presidency of Colombia
TL;DR
- The government's Financial Plan emphasizes the reduction of external debt, presenting a favorable outlook on public debt composition.
- Internal debt, however, has shown an increasing trend as a percentage of GDP.
- The external debt, when measured in dollars, shows a significant reduction, supporting the official narrative.
- Conversely, when measured in pesos, the external debt increases due to exchange rate fluctuations.
- This change in debt composition signifies a greater dependence on local market financing.
- An economist points out that the official message highlights external debt reduction while downplaying the rise in internal debt.
- The shift towards domestic financing may have implications for the local financial system and reduces exposure to dollar volatility.