Colombia sees strong growth, tax receipts

BOGOTA: Colombian Finance Minister Juan Carlos Echeverry said on Tuesday he expected economic growth of more than 5 percent in the second quarter and above 6 or 7 percent in the third quarter of this year.

Latin America's No. 4 oil producer has made a strong recovery from the global economic crisis, garnered three investment-grade credit ratings so far this year, and continued to reap strong inflows in the mining and oil sectors.

"I hope (growth in the second quarter) stays above 5 percent. I think that the third quarter will be very good, above 6 or 7 percent. That will allow us to reach near 6 percent by the end of the year," Echeverry said.

The minister also said tax collections this year might be almost 12 percent higher than forecast in the 2011 financial plan, boosted by a strong economy.

"I'd hope that we'd surpass 80 trillion pesos and if you ask me, I'd hope that we reach, hopefully, 85 trillion ($47.5 billion) in 2011," he told journalists.

Echeverry told Reuters in April that if the Andean country saw significantly higher-than-expected tax collection this year it could issue less government debt. For more see

Once seen as a failing state mired in guerrilla war, Colombia is enjoying a surge in foreign investment, especially in the mining and energy sectors, as violence from its five-decade conflict eases.

Its pro-market macroeconomic policies and improved security won praise from the three major Wall Street rating agencies, all of which upgraded it to investment-grade status this year.

Copyright Reuters, 2011