Unprecedented fiscal measures have been enacted to withstand COVID-19. However, stimulus in Colombia appears limited by regional standards. Suspension of the fiscal rule in 2020-21 will enable additional income support. Permanent fiscal deterioration amid a likely frail recovery is a major risk.
This paper is the first and the scene-setting part of the IIF Insurance Digitalization series which explores how digital technology transforms the insurance sector and its policy implications.
We downgrade our forecast and now expect an output contraction of 3.2%. The collapse in tourism has had the most immediate impact on the region. Shutdowns weakened domestic demand and exports declined markedly. Monetary and fiscal countermeasures will only partially offset this effect.
The June 2020 IIF Global Regulatory Update provides updates on current work streams.
The recent rise in oil prices is supported by the cut in global oil production and partial recovery in demand. We still expect Brent oil prices to average $40/b in 2020 and $45/b in 2020. Downside risks include poor OPEC+ compliance with the cuts and a continued global economic slowdown
ISDA’s Tara Kruse and Ian Sloyan visit FRT to highlight their Common Domain Model initiative for harmonizing trade processing and improving compliance.