Project Information Document (Concept Stage) - Improved Fiscal Management Systems Project - P150468 (original) (raw)

Concept Review Decision Track II-The review did authorize the preparation to continue I. Introduction and Context Country Context Colombia remains the fourth largest economy in Latin America, and continues to consolidate its position as one of LAC's strongest performers, with stable economic growth, low inflation, and decreasing unemployment. As a result of an enhanced macroeconomic framework, a commodity price boom, and better security conditions, Colombia weathered the global crisis robustly and has grown at high rates since. While emerging markets observed a growth slowdown throughout 2013, Colombia grew above the regional average. GDP growth is expected to reach 4 percent in 2014, slightly below the 2013 rate. Despite this strong macroeconomic performance, economic development remains unequally distributed across the country. The central region surrounding Bogotá is responsible for 73 percent of the country's output, with a per capita income that is double or triple the levels of most departments, the poorest being those closest to the Amazon rainforest and the Pacific coast. While