Colombia has made good economic and social progress over the last two decades. Sound macroeconomic policies boosted confidence, which together with favourable demographics and external conditions underpinned resilient economic growth. This has contributed to higher living standards, and, together with improving access to education and social transfers, brought significant social improvements. Poverty has fallen markedly in recent years, while progress in reducing inequality has been more muted. On 25 May 2018, Colombia was invited to become a member of the OECD.
Broadening access to quality education is essential for boosting productivity and reducing large income inequalities. A comprehensive strategy to fight informality, which has fallen but remains very high, is required to boost productivity and inclusiveness.
Economic growth will strengthen to around 3.5% in 2019 and 2020, as lower corporate taxes boost investment. Low inflation and interest rates will support consumption. With demand-driven growth and weak export performance, the current account deficit will widen.