Colombia will abandon fiscal deficit limits until 2022

Colombia's Fiscal Rule Advisory Committee has unanimously agreed to suspend government deficit limits until 2022 so that the government has more space to meet the fiscal needs created by the coronavirus pandemic, it said on Monday.

In May the committee approved widening the deficit limit to 6.1% of gross domestic product (GDP) after earlier increasing it to 4.9% in April. The government expects the economy to contract by 5.5% this year as measures to halt the spread of coronavirus batter Colombia's economy.