Government projects inflation of 7.2% and growth of 1.3% for 2023

Government presented the Financial Plan for 2023, in which he updated his goals and projections for the coming year in terms of growth, inflation and also in relation to tax perspectives.

(See: Government will pay $4 billion to the Fuel Stabilization Fund).

The Minister of Finance, José Antonio Ocampo, said that by 2023 the Government will do its accounts with an average price of oil at 94.2 dollars per barrel and that there is also an estimate of GDP for 2023 at 1.3%, below the data of 1.8% that it had last August.

Regarding the data of inflation, the figure was revised upwards and is expected to close the year 2023 at 7.2%.

In addition, Minister Ocampo commented that the growth projection for 2022 was 8.2%, which was 7.7%.

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“Although the growth figure is low for next year, to the extent that we look at very high growth this year, we are going to have a level of economic activity that is even 13% higher compared to the pre-pandemic, and that is even very higher than that of emerging economies and the averages of the OECD and Latin AmericaOcampo said.

Ocampo indicated that by the year 2022 the fiscal deficit it would close at -5.5%, while for the next year it is projected to fall to -3.8%. “We are over complying with the fiscal rule by almost 3 percentage points”, said the minister.

According to the head of the Treasury portfolio, a higher tax collection is expected for next year, with the rtax form, to which it adds a higher nominal GDP.

“What there is is greater public spending to finance government programs, but at the same time, the higher income means that we have a fiscal deficit that will have decreased to 3.8% of GDP. This is a sample of the Government’s fiscal responsibility, which is reflected in the Financial Plan”, indicated Ocampo and, in addition, he recalled that each year the rule becomes stricter and that the Government will also comply with it next year.

Between the main spending needs highlighted the social programs of the Government, which are around $20 billion, and also the account of the Fuel Price Stabilization Fund (FEPC).

(See: The country’s debt is $852.8 trillion, which represents 62.6% of GDP).

In relation to financing, Ocampo said that for next year 5.1 billion dollars of external resources are expected, and $36 billion of internal resources, especially in the issuance of TES.

Regarding the general government debt ratio, the minister assured that between 2022 and 2023 the net debt will show a correction of 1.9 percentage points of GDP, going from 50.5% to 48.6%.

“The foregoing will be marked by the dynamics of the National Central Government and driven by the reduction of the deficit that is expected in 2023“, said.

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