Colombia’s economy has proved resilient despite the global fall in oil prices but should adopt OECD recommendations for reforms in everything from education to infrastructure, the OECD said in a report on Thursday.
The Organization for Economic Co-operation and Development said solid macroeconomic policy and some tax reforms made Colombia “extremely resilient” to the crude price decline. The Andean country is in the process of joining the organization.
Colombia has not, however, adopted any recommendations from a 2015 report, the OECD said, and must make further reforms in education, formal employment, infrastructure investment and reducing barriers to competition.
“A pension reform is indispensable,” the report said. “It is also important to increase the tax base.”
The OECD predicts the Andean country will grow 2.2% this year, a more generous estimate than the 1.8% predicted by the central bank.
Colombia central bank cuts interest rate by 0.5 to 6.5%, citing economic concerns
(Reporting by Nelson Bocanegra; Writing by Julia Symmes Cobb; Editing by Cynthia Osterman)