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Pension Reform At Risk In Constitutional Court, April Economic Activity Due

COLOMBIA
  • After the news that the lower house of Congress had approved the government’s pension reform, Bloomberg report that the bill may be rejected by the nation’s constitutional court, according to constitutional experts. Last week, the government rushed the bill through the lower house without a debate, to beat an imminent deadline. Some lawmakers have said that this violated the constitution. The law is due to take effect in July 2025, but there is a risk that the court could issue a stay order to prevent it from taking effect until it has announced its decision.
  • On the data front today, economic activity is expected to rebound by +2.5% y/y in April, after a 1.5% contraction in March, supported by base effects. On a m/m basis, activity fell by another 0.8% in March, following a 0.3% m/m decline in February.
    • April Economic Activity NSA YoY, est. 2.5%, prior -1.5%

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