Ocampo’s main achievements at the head of the Ministry of Finance

On Friday, April 28, 2023, Jose Antonio Ocampo finished his job as Minister of Finance of the government of Gustavo Petro.

(See: Banco de la República once again raised its projection of GDP to 1%).

Ocampo left office after the president asked his cabinet to resign by protocol and decided that the economist was one of the 7 ministers who would leave his administration.

Ocampo’s replacement, who he spent almost 9 months in the Minhacienda, It will be Ricardo Bonilla, who already worked with Petro when he was mayor of Bogotá and was an economic adviser during the presidential process.

(See: The ‘special request’ that Ocampo made to the new Minhacienda).

That being the case and with the departure of Ocampo already consummated, What is the balance of your management? From the Government they did an analysis and these were the results.

As reported by the Ministry of Finance, one of Ocampo’s main achievements was that The Colombian economy maintained strong growth with job creation.

“In 2022, the Colombian economy registered an economic growth of 7.5%, positioning the country as the second with the best economic performance within the 38 member countries of the OECD. The favorable economic dynamism has extended during 2023, driven by the sectors of the great branch of commerce, the manufacturing industry and artistic and entertainment activities“.

(See: Position of the new Ministry of Finance on oil exploration and markets).

Another issue that stands out is that confidence in international markets was maintained.

“Since the end of October 2022, after the country was seriously affected by higher financing costs in the financial markets, a very favorable behavior has been registered, reflected in an appreciation of the exchange rate, the correction of the premium of risk and valuation of public debt securities“.

It was also recognized that inflation prospects are currently favorable and “and they have begun to be reflected in the results of the last months“.

(See: The day that Petro asked Ocampo to continue in the Minhacienda).

Finally, on macroeconomic issues, it was highlighted that Ocampo’s management helped to for the National Government to advance in the process of fiscal consolidation.

“Minister Ocampo leaves a plan for 2023 in which the process of fiscal consolidation continues, while resources are left for a substantial increase in social spending. A primary surplus of 0.6% of GDP is forecast. Primary spending will increase by more than $55 trillion in 2023 within a framework of fiscal responsibility. In fact, by the end of 2023, it is planned to reduce the fiscal deficit from 5.3% of GDP to 3.8% of GDP, equivalent to a reduction of 1.5pp, maintaining the commitment to the sustainability of public finances and with compliance with the fiscal rule“, was explained.

Jose Antonio Ocampo.

TIME

In this regard, they highlighted having achieved the tax reform “for equality and social justice“, the strengthening of development banking and the cooperative sector, the pension system reform project and the coffee policy and union unity.

“Ocampo led an ambitious economic agenda that allowed balancing various economic policy objectives in 8 months during the government of President Petro, in the midst of difficult circumstances derived from the international economic environment and uncertainty in the financing markets: macroeconomic stability, fiscal consolidation, resources for the economic viability of the Government’s social agenda and bases for the productive development strategy“, closed the Ministry of Finance.

(See: ‘We managed to generate confidence in the country’: José Antonio Ocampo).

After his departure from the Government, Ocampo will return to his work as an academic at the Columbia University.

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