Fiscal Suicides
The fiscal deficit. It sounds boring. For most people, it means nothing. It is an economic concept that seems to have nothing to do with their lives, with their daily lives. But nothing could be further from the truth.
TL;DR
- The projected fiscal deficit for Colombia's central government is 7.1% of GDP by the end of 2025, with a primary deficit of 3.5%.
- This deficit is attributed to irresponsible government spending and political agendas, not the pandemic.
- Consequences include projected inflation of 6.5% in 2026 and intervention interest rates rising to between 11.50% and 12%.
- National debt has reached 63% of GDP, with high interest rates on new debt (around 13.5% to 15%).
- The next government will need to implement fiscal adjustments of 3-4% of GDP, likely through painful spending cuts.
- Specific government actions cited include interventions in healthcare, energy markets, suspension of gas exploration, increased service contracts, corruption, and mismanagement, leading to an additional $40 trillion in primary spending in 2026.