The Colombian government says it will do all it can to avoid a further
increase of unemployment in the country. To achieve that it asks the
Central Bank to further lower the interest rates.
According to Finance Minister Oscar Ivan Zuluaga, the bank should lower interest rates to stimulate borrowing and household consumption, which in turn will positively stimulate the demand from companies.
The minister set this year’s inflation target at five percent, which, according to Zuluaga, will be eachy to achieve because of the low demand for Colombian products like oil and food.
In light of the global economic crisis, the first half year will prove to be most difficult for the Colombian economy, Zuluaga told Caracol Radio Thursday.
Despite the recession many of the world’s largest economies are in, the Government continues to expect a 3.5 percent economic growth for 2009.