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Colombia’s tax reform, inflation problems persist

The new tax bill unveiled by Colombia’s government, which aims to raise tax revenues to fund the government’s social programmes and “consolidate the fiscal adjustment” doesn’t change our view that the government’s debt-to-GDP ratio will continue to rise over the coming years. Meanwhile, the July inflation figures show that price pressures across the region remain acute, but central bank’s tightening cycles are still likely to come to an end over the next couple of months.

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