MercoPress. South Atlantic News Agency

Lagarde praises the Colombian economy and its potential support for IMF

The country is enjoying an enviable macro-economic policy with sound stability, admitted the IMF chief

The IMF Managing Director Christine Lagarde praised Colombia as a member with the capacity to support the multilateral organization with “funds” and “services”, something which in the past was not possible. Lagarde made the comments after meeting with Colombian president Juan Manuel Santos in Bogotá where she underlined the “magnificent moment” of the Andean country’s economy.

President Santos said that the IMF chief presence was a ‘courtesy visit’ very different from others in the past by IMF officials when Colombia was going through “moments of anguish” and was requesting aid from the fund.

But “currently it is enjoying an enviable macro-economic policy that has given the country much stability” and which is supported by “very solid numbers”, said the IMF head.

In 2011 the Colombian GDP expanded 5.93% and so far this year has managed to overtake Argentina’s economy. This means according to former Colombian Finance minister Juan Carlos Echeverry that since last August the country has become the second largest economy of South America, behind Brazil.

Although the IMF two months ago made a downward review of growth prospects for the world economy, including Colombia, from 4.7% to 4.3%, the government of President Santos had kept to the original forecast of 4.8% for the twelve months of 2012.

After reviewing the country’s numbers with Finance and Public Credit minister Mauricio Cardenas and following an exchange of ideas on the situations of the European Union and the US, Lagarde said that the global economy “is no where as solid and stable as the Colombian”.

Lagarde met on Monday with President Santos, the economic team, organizations of small and medium companies and on Tuesday was scheduled to visit the Bank of the Republic board, or central bank responsible for monetary policy and issuing money. After that she flies to Chile, a showcase of economic efficiency in the region.