Being Investment Grade

The Colombian economy has been doing very well duties to recover the credit rating of investment loss in the year 1999, grade but the international financial crisis has generated him unexpected problems that away from the cherished goal.Investment grade is a very big step for which Colombia is not yet ready, at least not in the next one or two years. We have always had doubts about the fiscal situation of the country, which could worsen as a result of the crisis, said the analyst of Moody s Alessandra Alecci, generating uneasiness among Colombians in general and in particular between the Colombian business community.External factors come knocking the Colombian economy that originally had to struggle against external inflationary pressures and must now cope with the slowdown in the growth of the global economy which affects the dynamics of the Colombian economy, an economy that in recent times has increased its efforts by open to the outside.The fiscal and external situation of the Colombian economy have been the two elements which prevented Colombia to regain its investment grade. That is why that Uribe’s Government has made efforts to improve both fronts, reducing the tax gap and celebrating several treaties of free trade agreement (FTA), to balance the external accounts.But the international financial crisis will represent a blow on both fronts for the coming year. Although it was expected that in 2009, the fiscal deficit of Colombia increased by an increase in public spending (for defence and pensions), the international financial crisis that will result in slower growth of the Colombian economy (as revealed Richard Francis, s & P, the Agency is revising its projected growth of Colombia, which will very likely be downwards)It will have implications on the level of tax revenues which will reduce worsening fiscal situation.On the other hand, the slower global economic growth will be translated in a minor demand external and an increase in competition in the local market, of imported products.