Europe Asia News

Colombian President Gustavo Petro made assessments regarding economic policies.

Arguing that increasing real interest rates would halt economic growth, Petro said, “If the real interest rate is raised to 6.7 percent, the real economy stops growing.”

Evaluating debt sustainability, Petro said, “If the real interest rate is above the economic growth rate, debt becomes unsustainable.”

Stating that the Colombian economy has long had a primary deficit, Petro criticized the current fiscal structure.

Touching on his proposed solutions, Petro said, “The primary deficit needs to be reduced, interest rates need to be lowered, and economic growth needs to be increased.”

Continuing his criticism of interest rate policy, Petro said, “Today the real interest rate should be 2 percent, not 6.7 percent.”

Petro also said regarding the causes of inflation, “Inflation stems not from increased demand, but from insufficient food production.”