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Fiscal Path Doubts Persist For Future Presidency

COLOMBIA
  • Colombia’s new fiscal forecasts in the mid-term fiscal plan pointing to lower than previously estimated debt and budget deficits and faster economic growth are positive news but doubts persist on whether the next president will continue the fiscal consolidation path, analysts comment in reports.
  • Mario Castro, strategist at BBVA
    • “We do not expect any significant market reaction”
    • Main drivers for investors include the “uncertainty around the presidential election and how the new government could alter/deviate from the macro/fiscal assumptions depicted in the 2022” medium-term fiscal framework
      • Other drivers include Fed interest rate increases and external market conditions
    • “Regardless of who wins the presidency next Sunday, markets will be paying attention to any signal regarding potential changes in the paths of revenue and expenditure that could alter the fiscal performance expected in the coming years” (Bloomberg)
  • Court Orders Colombian Presidential Rivals To Debate
    • A Colombian court on Wednesday ordered the two men in this weekend's presidential election runoff to hold a public debate, something that Rodolfo Hernandez had avoided until now. (AFP)
    • The Bogota High Court ruled that Hernandez and his leftist rival Gustavo Petro must arrange, by Thursday at the latest, a debate to be broadcast on public TV and radio ahead of Sunday's vote.

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