Miami Herald Today---Colombia Spending Outpaces Growth

goin_south says on Mar 10, 2007, 21:00:

imagine that! THE World's Largest Cocaine producing country, posting a deficit.

Something is dreadfully wrong.

Some Colombians, catching up with some Venezuelens.
When still, over 60% of the population is said to live 'in poverty'.
Crazy shit.

'what does it mean, when one of you (colombians) tell another: YOU WERE NOT/ARE NOT. 'COLOMBIAN ENOUGH'?? jejeje..a mixture, I think, of stupidity mixed with a false sense of arrogance.. How 'colombian' do you have to be? to be 'colombian enough

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miamimike says on Mar 10, 2007, 22:40:

Stress Lines in The Colombian Economy,,,, http://abcnews.go.com/International/wireStory?id=2939046


"BOGOTA, Colombia Mar 9, 2007 (AP)— When President Bush arrives in Colombia on Sunday he's likely to praise the economic model of President Alvaro Uribe, his staunchest ally in a region increasingly dominated by anti-American leaders.

But some of the praise may be undeserved considering new economic data pointing to a sag in public finances in Colombia, the beneficiary of $700 million in annual U.S. aid.

Colombia's position as Washington's star economic pupil has irked some leaders in the region who don't get the same kind of praise but can boast relatively healthy finances, although they are also not without their economic red flags.

While some of the region's former economic basket cases, including Argentina and Peru, posted budget surpluses last year, Colombia's central bank said it had missed its 2006 fiscal-deficit target by a wide margin.

Despite record gross domestic product growth of an estimated 7 percent, public spending exceeded its income by 0.9 percent of GDP more than double the government's revised target, made in December, of 0.4 percent.

"With the economy going so strong, and still the central government is posting such a huge deficit, you have to wonder what happens when growth cools," said Fernando Losada, director of emerging markets research at ABN Amro in New York.

The White House is forecasting a U.S. budget deficit of 1.8 percent of GDP this year, down from 1.9 percent in 2006, albeit in an economy more developed and creditworthy than Colombia's.

Colombia's results were particularly worrisome to investors because the country is one of the few in commodity-rich Latin America to experience an erosion of its fiscal accounts in 2005 the public sector posted a balanced budget and a widening of its trade deficit.

Oscar Zuluaga, who was sworn in as Colombia's finance minister Thursday in replacement of the retiring Alberto Carrasquilla, downplayed the reversal, saying the trade and productivity benefits from a huge infrastructure development program have yet to be felt."


Continued

"Wait a minute. What did you just say? You're predicting $4-a-gallon gas? That's interesting. I hadn't heard that." -- Feb. 28, 2008 --George W. Bush, Washington, D.C.

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billyb says on Mar 11, 2007, 00:28:

Colombia's Credit Rating Increased to BB+ By S&P (Update1)

By Andrea Jaramillo

March 5 (Bloomberg) -- Colombia's foreign credit rating was raised to BB+, one level below investment grade, by Standard & Poor's as economic growth boosts tax revenue.

The increase from BB puts Colombia's rating in line with El Salvador and returns it to the level it had until May 2000. S&P said its outlook on Colombia's rating is stable.

``The upgrade is supported by Colombia's significantly improved growth prospects and fiscal performance,'' S&P analyst Richard Francis said in a statement. ``Colombia has enjoyed robust economic growth while boosting tax receipts and administering a better tax administration.''

Colombia's economy is growing at the fastest pace in almost three decades. The Finance Ministry estimates its budget deficit was close to zero in 2006.

S&P also raised the nation's long-term local currency debt rating to BBB+ from BBB.

To contact the reporter on this story: Andrea Jaramillo in Bogota at ajaramillo1 at bloomberg.net

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juancegomez says on Mar 11, 2007, 09:52:

Well... Mario: Actually, even from a neoliberal perspective, the Colombian government has failed to implement necessary economic reforms (see the recent failed attempt at tax reform), and instead insists on a yearly round of improvisations.

Real or perceived puppetry isn't really the issue here, IMHO.

el felizafortunado: Likewise, considering that the large profits of the drug trade don't simply go into the government's coffers, but instead are invested both nationally and internationally by the druglords & co., that really doesn't have much of an effect on the deficit.

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goin_south says on Mar 13, 2007, 23:32:

juancegomez... I really have to believe (right or wrong) that the Government has a LARGE HAND in the cocaine trade in Colombia; Uncle Alvaro, being in such close ties with A.U.C. and knowing that the Farc and AUC battle over those grounds (I'm not talking coffee, here!) And because that the Government has a LARGE HAND OR TWO in the cocaine trade (which is why we don't and won't see an end to it - the cocaine trade) they should not be reporting a DEFICIT.

I almost always have utmost respect for the OPINE of Juancegomez, but... NO ONE KNOWS EVERYTHING.

'what does it mean, when one of you (colombians) tell another: YOU WERE NOT/ARE NOT. 'COLOMBIAN ENOUGH'?? jejeje..a mixture, I think, of stupidity mixed with a false sense of arrogance.. How 'colombian' do you have to be? to be 'colombian enough

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