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Economy & Business - June 2025
COLOMBIA: Descending into violence and financial disorder
Colombia’s vicious cycle of political confrontation and falling investor confidence has taken a decided turn for the worse over the past month. First there was another round of political setbacks and corruption scandals beleaguering President Gustavo Petro. An increasingly isolated and weakened president has become ever more combative and willing to embrace populist policies, pushing the country to the brink of a constitutional crisis. Then there was the shooting of a presidential aspirant, multiple attacks with explosives, and the government’s jettisoning of the fiscal rules that have underpinned the country’s investment-grade credit rating for a decade and half. Not surprisingly, investors and creditors had a hard time digesting it all.
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