Since the COVID-19 pandemic, Colombia has seen a significant increase in the use of electronic payment channels. This blog presents detailed information on the evolution of these payment channels and their characteristics, identifying the main gaps observed in the country.
The COVID-19 pandemic led inflation in Colombia to fall below the 3.0% target, reaching its lowest level in history of 1.51% in March 2021. However, in the second quarter of 2021, inflation began to rise to the point that in March 2023 it reached its highest peak (13.3%) since 1999. What explains this upturn in inflation?
On 23 July 2023, Banco de la República (the Central Bank of Colombia) celebrated its 100th anniversary, having been established as the Central Bank of Colombia through Law 25 of 1923, according to the parameters defined by the Kemmerer Mission.
Foreign direct investment (FDI) not only plays a very important role as a source of external financing, but also allows for technology transfer, access to international markets, and the efficient reallocation of productive factors. All of this offers benefits to recipient economies in the form of higher economic growth, increased productivity, and an expanded supply of goods and services.
The value added tax (VAT) exemption days policy has been used in the United States and in the European Union to encourage the consumption of goods and services that are important for lower-income households. In Colombia, after the crisis caused by the COVID-19 pandemic and to help boost the economy, the Colombian Government implemented the VAT-exempt days policy, regulated by Decree 682 of 2020 and subsequent regulations. With this policy, the purchase of certain goods was exempt from VAT for a day.
La política de los días sin impuesto al valor agregado (IVA) ha sido utilizada en Estados Unidos y países de la Unión Europea para fomentar el consumo de bienes que son parte importante del consumo de los hogares de menores ingresos. En Colombia, tras la crisis ocasionada por la pandemia del COVID-19 y con el objeto de reactivar la economía, el Gobierno Nacional implementó la política de los días sin IVA, reglamentada mediante el Decreto 682 de 2020 y disposiciones posteriores, según la cual se eximía la compra de ciertos bienes del pago del IVA.
Whenever the monetary authority meets to make interest rate decisions, two key questions need to be answered: Where is the economy at? and Where is the economy headed? Answering these questions is no easy task. On the one hand, the lag in statistical information makes it difficult to have a complete overview so as to answer the first question. On the other hand, uncertainty about the future performance of local and external economic variables limits the accuracy of forecasts to answer the second question.
Cada vez que la autoridad monetaria se reúne para adoptar decisiones de tasas de interés requiere respuestas a dos preguntas fundamentales: ¿dónde está la economía? y ¿para dónde va la economía? Contestar estas preguntas no es una tarea fácil. Por una parte, los rezagos de la información estadística dificultan contar con un panorama completo para responder a la primera pregunta. Y por otra, la incertidumbre sobre el comportamiento futuro de variables económicas locales y externas limitan la precisión de los pronósticos para responder a la segunda.
A Constitutional Reform Bill is currently under consideration in the Congress of Colombia that would substantially increase the percentage of the nation's current revenues to be transferred to territorial entities. This proposal implies a transfer of responsibilities and competencies from the Central National Government (CNG) to subnational governments, which is yet to be defined. Without a corresponding transfer of fiscal responsibilities, the bill would significantly increase total government spending, posing substantial macroeconomic risks.
Actualmente cursa en el Congreso de la República un proyecto de acto legislativo que aumenta sustancialmente el porcentaje de los ingresos corrientes de la nación que se debe trasladar a los entes territoriales. La propuesta supone una transferencia de responsabilidades y competencias del gobierno nacional central (GNC) a los gobiernos subnacionales, que queda por definirse. De no darse una transferencia apreciable de responsabilidades fiscales, el acto legislativo implica aumentos en el gasto total del gobierno que conllevan riesgos macroeconómicos significativos.
