Economy

Leading central banks are expected to begin cutting interest rates over the coming year as falling inflation fuels predictions among investors and economists that prices are under control.After entering 2023 in the midst of aggressive interest rate increases, the Federal Reserve, European Central Bank and Bank of England put their tightening programmes on hold in the second half of the year.Now, with headline inflation rates retreating in large parts of the G7 group of industrialised nations and economies slowing, the pressure for policymakers to cut borrowing costs is set to gather strength.“We expect inflation to fall further than central banks expect,” said Neil Shearing, group chief economist at UK-based Capital Economics. He noted that growth was weakening just as distortions caused by the Covid-19 pandemic and global energy crisis were unwinding.“Policy is now quite restrictive, meaning central banks can loosen without [it] necessarily becoming supportive [of growth]. Think of it as pressing less hard on the brake rather than pushing on the accelerator,” he said.Investors are betting the Fed will cut for the first time in March, with five quarter-point cuts to follow during the year, according to market pricing. The ECB and the BoE are also expected to lower rates six times in 2024, with the former starting in March or April and the latter in May.Financial markets ended 2023 sharply higher as investors became increasingly confident that the Fed was ready to start easing policy in the wake of its December 14 decision to hold rates. The rally put the MSCI World index, a gauge of global equities, on track for its best annual performance since 2019.The key moment came at the Fed’s December meeting, as it released projections showing officials expected its benchmark federal funds rate — currently at a 22-year high of between 5.25 per cent and 5.5 per cent — to be cut by 75 basis points over the coming 12 months.Speaking at the meeting, Fed chair Jay Powell failed to rebut market expectations of steep rate cuts in 2024, saying the central bank was “aware of the risk that we would hang on too long” by keeping policy too tight. “We know that’s a risk and we’re very focused on not making that mistake,” he said.Fed chair Jay Powell said the central bank was ‘aware of the risk that we would hang on too long’ by keeping policy too tight More

The measures are part of President Luiz Inacio Lula da Silva’s plan to “re-industrialize” Latin America’s largest economy, where industrial output still lags behind pre-pandemic levels and is more than 18% below its 2011 high.The Lula administration has pledged to boost industrialization by incentivizing “green” projects including flex-fuel and electric vehicles, renewable power and biofuels.Alckmin told a press conference that the first measure was an executive order establishing the “Mover” program, which lowers income taxes levied on transportation companies for them to invest in new technologies, research and development.The program is set to provide benefits totaling 3.5 billion reais ($721.34 million) next year but will gradually increase until reaching 4.1 billion in 2028, said Alckmin, who is also Lula’s minister of Development and Industry.”This will attract investments to Brazil,” he said. “Our problem is low investment and low productivity. We need to act to increase both.”An executive order means the program takes effect immediately but is required to receive Congress approval within four months.Lula’s second measure, Alckmin said, was a bill sent to Congress suggesting 3.4 billion reais in income tax benefits for companies to renew their machinery, which he dubbed the “accelerated depreciation project”.”We will stimulate the renewal of Brazil’s industry. Equipment depreciation normally happens within 20 years, we’re aiming to speed it up so it can happen in two years,” the vice president said.He added the program would have a “second phase” in the future but did not provide further details.Revenue losses linked to the tax benefits would be offset by import taxes, Alckmin said, including those levied on electric vehicles brought from abroad.($1 = 4.8521 reais) More

(Reuters) – Higher consumer spending over the holiday season, real wage gains over the last nine months and a jump in consumer confidence point to a good start for 2024, said Jared Bernstein, chair of the White House Council of Economic Advisers on Sunday.Bernstein told “Fox News Sunday” that President Joe Biden would continue to focus on lowering costs for Americans if he won a second term in the November 2024 presidential election. “If you actually look at the trend in the economy … I think you see some real momentum getting us in a good start for the new year,” Bernstein said.U.S. consumer confidence increased to a five-month high in December, the Conference Board reported on Dec. 20, mirroring a nearly 14% increase in the University of Michigan’s benchmark Consumer Sentiment Index, its biggest jump in more than three decades. For most of Biden’s term, the Michigan index has reflected widespread pessimism among households about the economy, but the new data showed Americans’ growing confidence that inflation was finally trending lower.Michigan survey director Joanne Hsu noted the upswing in December reversed “all declines from the previous four months. These trends are rooted in substantial improvements in how consumers view the trajectory of inflation.”Indeed, inflation has eased substantially over the course of 2023. The Labor Department’s Consumer Price Index began the year with annual price increases averaging 6.4%. By November, that was down to 3.1%. Bernstein noted that gasoline was below $3 a gallon in more than half the states.The U.S. national average retail gasoline price could drop by 13 cents next year to $3.38 a gallon, a second straight year of dropping fuel costs, according to price tracker GasBuddy.com’s annual outlook.”This has been a very strong Christmas season,” Bernstein said, adding that spending at restaurants rose 8% from Nov. 1 to Christmas Eve, with spending on online sales up 6%, with overall retail spending rising 3%.Despite the growing optimism, the Biden administration says it remains alert to geopolitical risks, including Russia’s ongoing war in Ukraine, which has the potential to disrupt grain markets and push up inflation again.In the Middle East, Israel predicts its war with Hamas militants will last for months, increasing the risk of regional escalation. In the Red Sea, attacks by Iranian-backed Houthi militants in Yemen have disrupted world trade. Maersk, one of the world’s major cargo shippers, on Sunday said it would pause all sailing through the Red Sea for 48 hours after a Houthi attack on one of its container vessels. Bernstein also cited big gains in the startup of new businesses, especially by people of color, which he said reflected more optimism and confidence about the U.S. economy.Bernstein said the Biden administration was keeping an eye on rising credit card debt but saw it as a return to normal levels of delinquencies or debt levels. Record increases in wealth among Americans of all income levels and among people of color would also help offset the increases, he said. More

In a televised speech to mark the New Year, Xi said China would deepen reforms to shore up confidence in the economy.Xi said China will “consolidate and enhance the positive trend of economic recovery, and achieve stable and long-term economic development,” Xi said.”We must comprehensively deepen reform and opening up, further boost confidence in development, enhance economic vitality, and make greater efforts to promote education, promote science and technology, and cultivate talents.”Xi voiced his concerns over difficulties facing some firms’ operations and the hardship facing some people in employment and their daily lives, and the impact of natural disasters such as floods and earthquakes in some regions.China will promote high-quality development and balance development and security in a well-coordinated way, Xi added.The government has in recent months announced a series of measures to shore up China’s feeble post-pandemic economic recovery, which is being held back by a property slump, local government debt risks and slow global growth.Analysts expect China’s economic growth to hit the official target of around 5% this year, and Beijing is expected to maintain the same target next year.Earlier this month, top Chinese leaders met and laid out economic plans for 2024, pledging to take more steps to support the recovery. The central bank has pledged to step up policy adjustments to support the economy and promote a rebound in prices, amid signs of rising deflationary pressures. More

The strategy of moral suasion marks a sharp break from Beijing’s approach the last time the currency was on the ropes, in 2015.Back then, the People’s Bank of China (PBOC) resorted to official intervention as the central bank burned $1 trillion in reserves to shore it up.This year, as China’s economy wobbled and money left the country, the PBOC took a starkly different approach, defending the currency by signalling to markets what kind of selling it would and would not tolerate.Interviews with 28 market participants show at least two dozen cases where regulators closely and frequently steered market participants through a range of co-ordinated actions this year to resist strong downward pressure on the yuan.The PBOC and State Administration of Foreign Exchange, the currency regulator, did not respond to Reuters’ faxed questions about its approach. PBOC governor Pan Gongsheng has previously said regulators would prevent exchange rate overshooting risks and maintain stable FX market operations.The strategy market participants and analysts described to Reuters has prevented a destabilising yuan slide.However, they told Reuters that it has also chilled large parts of China’s foreign exchange market, crashing trading volumes and raising questions about the yuan’s chances of becoming a global reserve currency.”The circumstances … at the moment are considerably more complicated because there are both domestic as well as global macroeconomic factors,” said Eswar Prasad, Tolani senior professor of international trade policy at Cornell University.He described the PBOC’s use of “non-standard measures to intervene in foreign exchange markets” as a form of “triage” to stop the yuan falling too rapidly.As the currency of the world’s second-largest economy and biggest exporter, the yuan’s value determines the price of goods around the world and trillions of dollars in capital flows. It also serves as a barometer of China’s challenges.A Chinese forex regulator, speaking on condition of anonymity, said the currency’s value was ultimately determined by fundamentals and currently a product of how “effectively China can thwart decoupling”, a reference to Western efforts to reduce economic reliance on China.Ten traders interviewed by Reuters said key warnings first emerged in June when the PBOC’s daily yuan guidance that determines its trading range for the day, known as the midpoint, started to diverge from market expectations.In theory, the midpoint is based on contributions from 14 banks and referenced to the previous day’s trade and overnight moves, which should make it easy for markets to predict.By August, however, the midpoint’s yawning deviation from trader estimates was read by the traders interviewed by Reuters as a signal the PBOC did not want the currency to go where markets were pushing it.AGAINST THE TIDEManaging a currency can be a white-knuckle ride. In 2015, China cut the yuan’s midpoint by 2%, with the PBOC saying it was a one-off move to bring the trading band in line with market pricing. Fearing further devaluations, however, investors sold Chinese assets, sending stocks and the yuan into freefall and forcing the bank to use reserves to stabilise the currency. This time, efforts to manage the yuan involved more targeted and specific directions to banks and currency market participants, according to the traders who spoke to Reuters.For example, whenever momentum seemed against the yuan, state-owned banks quietly became buyers, the traders said. This generally happened around psychologically significant currency levels and seemed aimed at containing volatility. Those traders told Reuters that in late May they noticed state banks stepping in with two days of yuan buying after the currency hit its lowest then for 2023.Similarly, state banks’ yuan buying intensified in December after Moody’s announced a cut in China’s ratings outlook. Individual traders were not able to estimate the size of buying nor was Reuters able to confirm whether such trading was directed by the central bank.Official data shows no evidence the PBOC sold dollars outright as it did in 2015. However, market participants noted banks sold dollars acquired by currency swaps, which would not be seen in such data.At the same time, smaller lenders have experienced increased “window guidance” or unofficial, verbal advice from regulators to have both banks and their clients reduce dollar holdings, according to six trader and banking sources.In June and July, the China FX Market Self-Regulatory Framework, which is overseen by the PBOC, told major state-owned banks to cut dollar deposit rates, which would encourage exporters and households to switch dollar receipts into yuan, market watchers said.WORKING THE PHONES The pressure on bankers has mirrored pressure on the yuan, which is down almost 2.8% against the dollar this year even though the benchmark dollar index lost 2.2%.On Sept. 8, the yuan struck a 16-year low. A few days later, managers at eight major banks were summoned to Beijing to meet PBOC officials, according to five banking sources, two of whom attended the meeting. They were told companies wishing to buy more than $50 million would need approval from the PBOC, three sources said. Bankers were also told they needed to cut spot trading, stagger dollar buying and not hold net long dollar positions at the end of any trading day, two sources said.Authorities also focused on monitoring exporters’ foreign exchange buying and selling plans given their large currency holdings and outsized sway on yuan moves.In recent months, regulators have called banks and queried them with surveys on a near weekly basis on the intentions of exporter customers, according to officials at five banks who spoke to Reuters. Such calls had previously been sporadic and surveys sent only monthly.The volume of yuan traded onshore slumped 73% from August’s level to a record low of 1.85 trillion yuan in October. That shows China’s bankers have heeded the call to reduce trading, particularly dollar buying, but also that the central bank’s efforts are chilling the market, analysts say.For now, however, the currency appears to have stabilised comfortably above September’s 16-year low.Market players are unwilling to directly fight the PBOC — but nor are they willing to acquiesce entirely.”I’ve been closely monitoring dollar prices this year, as I have dollar payments coming in every few weeks,” said one Shanghai-based exporter of electronic components surnamed Zhu. “The daily question has been: ‘Do I need to save them, or convert them back into yuan?'” So far, she has saved them on expectations of a better yuan price for her dollars. More

The Financial Times’s team of crystal ball gazers had their best year for a while in 2023, with only three wrong answers — though we got these pretty wrong. The S&P 500 did not fall by more than 10 per cent, but climbed over 20 per cent (though driven mostly by just seven tech stocks). Europe didn’t experience blackouts, though we said this would happen only in a very cold winter (it wasn’t). And there wasn’t a string of defaults in Africa, though Ethiopia did default this week.It says much about the world that, for a third year running, we feature questions on war or military action this year — between Israel and Hamas, Russia and Ukraine and, perhaps, between China and Taiwan. The big calls seem ever harder to make. But on the question more FT staff suggested than any other — will Donald Trump be president? — Edward Luce agreed to venture his best guess. Read on to find out!A record 17 readers tied on 19 correct answers in our competition. Congratulations to Richard Barnes of London, overall winner after the tiebreaker. We invite readers again to submit answers to this year’s 20 questions and tiebreaker, giving their real name and email. Happy New Year! Neil BuckleyFT readers: submit your predictions for 2024Will Donald Trump become US president again?No. But — assuming the recent legal hurdles thrown up against Trump standing in Colorado and Maine are overcome — his campaign against Joe Biden will be the nastiest presidential election in US history.It will be very close run. Trump will be criminally convicted in at least one of his four trials, probably two, before the election, and will present it as political persecution by the “Biden crime family”. Though visibly ageing, Biden will squeak through, more because a narrow majority will be rejecting Trump than endorsing a Biden second term. Edward LuceWill 2024 surpass 2023 as the hottest year on record?Yes. The year 2023 was marked by so many scorching heat extremes that it will almost certainly prove to be the hottest in 174 years of climate records, once the final numbers are in. But many scientists expect 2024 to be even warmer, because the 2023 heat was bolstered by the emergence of a naturally occurring El Niño climate pattern. This typically has the biggest effect on global temperatures after it peaks — which may not happen until January 2024. Pilita ClarkWill the Israel-Hamas war trigger a full-blown regional conflict?No. The war has sparked violence across the region involving Iranian-backed militant groups. The biggest concern is that border clashes between Hizbollah, the powerful Lebanese movement, and Israeli forces spiral into a full-blown conflict between the two. Benjamin Netanyahu’s government has been clear it can no longer live with Hizbollah fighters camped on the Lebanon-Israel border, but the hope is that diplomatic pressure contains the situation. Neither Washington nor Tehran want a broader regional conflict, even if fighting between Hizbollah and Israel intensifies, but the situation is alarmingly volatile. Andrew EnglandWill the US achieve a soft landing? Yes, in the short term. Inflation has drifted down in a manner that has surprised even the Federal Reserve this year, and growth has remained stronger than most economists expected. Since consumer spending remains robust and wage growth (fairly) well contained, a soft landing could continue for several months. But don’t bet on it lasting throughout 2024. There will be less fiscal support, as Covid-era handouts to households have been consumed. Higher interest rates are sparking bankruptcies, US debt worries are rising and geopolitical stresses are fracturing global trade. That could raise inflation and slow growth. So within a year, the landing will probably become more painful. Gillian TettWill Keir Starmer become UK prime minister?Yes, though it is possible the UK election does not happen until January 2025. Rishi Sunak’s Conservatives look divided and exhausted. The number of seats the Labour opposition must win means it could land anywhere between a minority government and the landslide to which opinion polls currently point. But it is extremely hard to see how the prime minister can recover enough support to hold on to power. Robert Shrimsley Will China’s economic growth crash to 3 per cent or less?No. The quality of Chinese growth has certainly deteriorated markedly in recent years. The property market, which contributes almost a third of gross domestic product, is slowly imploding. Many local governments are drowning in debt. The Chinese consumer is hesitant. But GDP growth in 2024 is still set to comfortably exceed 4 per cent — assisted by a medley of debt bailout packages, fiscal stimulus initiatives and other forms of official support. Advances in technology will remain strong. James KyngeWill a change of president in Taiwan spark a Chinese attack?No. Many people inside and outside Taiwan worry more about war these days, thanks to China’s expanding military manoeuvres. The frontrunner in January’s presidential election, the ruling Democratic Progressive party’s Lai Ching-te, also has a very different background to the incumbent Tsai Ing-wen.But Lai has been clear he would follow Tsai’s cautious China policy stance — leaving Beijing with no pretext for an assault. The Chinese leadership under President Xi Jinping still seems to believe, too, that it has a chance to coerce Taiwan into unification without fighting — by stepping up military intimidation, political infiltration, economic lures and international isolation. Kathrin HilleWill the US and the EU keep funding Ukraine?Yes. As Ukraine’s counteroffensive against Russia’s invasion stalled in late 2023, military and financial support for Kyiv became a contentious issue on both sides of the Atlantic. The Biden administration is determined to keep supplies flowing: a deal with Republicans in Congress might involve concessions on US border security in return for extended aid for Ukraine. A bigger challenge will arise if Donald Trump returns to the presidency. EU leaders, meanwhile, should find ways early in 2024 of circumventing Hungary’s veto on a €50bn financial aid package. But Ukraine is still likely to struggle to make a military breakthrough, so will come under mounting pressure to negotiate with Moscow. Tony BarberWill Ursula von der Leyen secure a second term as European Commission president?Yes, with some effort. Ursula von der Leyen has acquitted herself well in a term marked by crises, proving the value of common EU action in borrowing, health, defence spending and energy policy. Her flagship European Green Deal has largely stayed on track.But her habit of springing policies on capitals and close alignment with Washington have annoyed some leaders. Her 2019 coalition is at risk from gains by the populist right in European parliament elections. But her centre-right EPP party is in pole position to retain the presidency, even if that means closer collaboration with Eurosceptic parties. And, for now, no one seems like a stronger EPP candidate. Martin SandbuWill the Bank of Japan raise rates above zero?No. 2024 will be the year the Japanese central bank finally ditches yield curve control and negative interest rates. Contrary to market expectations of several further increases, however, rates will end the year no higher than zero. With mediocre wage growth, a stronger yen in prospect as US rates peak and reasons to prefer a steeper yield curve, the BoJ is unlikely to set a positive rate — although as with any central bank forecast, much depends on the incoming data. Robin HardingWill the ANC vote fall below 50 per cent in South Africa’s election?Yes, just. After 30 years in power, the African National Congress will miss out on an absolute majority for the first time since Nelson Mandela became president in 1994. The party’s image has been eroded by years of corruption, incompetence and appalling service delivery, epitomised by rolling power cuts. In real per capita terms, the economy has stagnated for 15 years. In 2019, under President Cyril Ramaphosa, the ANC vote dipped to 57.5 per cent. This year, it will fall again. If it goes below 50 per cent, as seems distinctly plausible, it will need coalition partners. David PillingWill Argentina dollarise its economy?No. Some would argue long-suffering Argentines have already dumped the peso: they save in greenbacks and buy and sell property unofficially in dollars.But despite his campaign pledges to dollarise the economy, Argentina’s radical new libertarian president Javier Milei plumped instead for devaluation in his first economic measures.Though his economy minister Luis Caputo insisted that adopting the US currency remains a long-term aim, it is unlikely to happen in 2024: the IMF is unenthusiastic and most economists believe the loss of economic sovereignty would outweigh the benefits. Michael StottWill renewables overtake coal in global electricity generation?No. While renewable power’s share of generation is expected to outstrip coal within the next few years, it is unlikely to happen in 2024, thanks to China.Chinese demand for coal has continued to rise rapidly in 2023 and while renewables are growing fast too — expected to account for about 90 per cent of all new generation capacity globally — this won’t quite be enough to surpass coal generation next year, even as western coal use declines. But the tipping point is not far away. More critical for the climate is when China’s appetite for coal finally goes into reverse. David SheppardWill investors go heavily back into bonds?Yes. “Bonds are back” was the biggest bet in markets in 2023, but it was a flop. Scorching inflation and relentless interest rate rises meant that by October, the Bloomberg Barclays Aggregate bond index was down 4 per cent, rekindling memories of a brutal 2022 and frustrating big investors’ efforts to call a bottom.Now, investors believe a slowdown of some sort is coming to the US economy as the lagged effects of interest rate rises finally kick in. With inflation sinking and rate cuts on the horizon, bonds seem a safer bet. Katie Martin Will X go bankrupt?Yes. Elon Musk frequently uses warnings of bankruptcy to motivate; he did it at Tesla and SpaceX. But this time, with X’s advertising tanking and attempts to create new sources of revenue falling flat, there’s a good chance it will happen.After recent emotional outbursts against X’s advertisers, he may be reckless enough to think he can put it through bankruptcy and still come out on top. Musk fighting for control of X in bankruptcy would be a gripping sequel to the drama-filled Twitter acquisition. Richard WatersWill Sam Altman be sacked again from OpenAI?No. Sam Altman originally structured his company so that its board controlled a non-profit created to benefit humanity. He said he held no equity in OpenAI, and the board could fire him at any time. But when Altman’s co-founder and three independent board members did just that in November, they ended up reinstating him four days later. Now, all but one of the original board have been ousted; Microsoft — OpenAI’s key partner and largest financial backer — will have a role as a non-voting observer on the new board and the company’s governance will be overhauled so he cannot be put in such a position again. Madhumita MurgiaWill capital markets reopen for IPOs?Yes. Companies can only put off fundraising for so long, and after a lean spell Wall Street bankers need to find a way for more activity to take place. US and European IPO markets have been moribund for two years, but with interest rates peaking and stock markets back near record highs, the environment for dealmaking looks brighter. Still, don’t expect a return to the fundraising frenzy of 2020 and 2021. Rates might be falling, but they are not going back to zero and investors will be paying more attention to profitability and balance sheet strength. Nicholas MegawWill Novo Nordisk end the year as Europe’s most valuable company?Yes. In 2023, obesity treatment Wegovy became one of the most successful drug launches of all time and Denmark’s Novo overtook luxury goods group LVMH in value. But 2024 looks challenging for those selling highly priced handbags to China — while Novo’s main issue in selling highly priced obesity medication is how quickly it can produce it. After winning over patients and doctors to using its diabetes drug for obesity, Novo is now expanding access and coverage in a market where perhaps 1mn people are being treated out of a patient population of 100mn in the US and 700mn globally. Helen ThomasWill female pop stars out-earn the men in concert tours?No, not overall. Taylor Swift’s Eras tour this year became the first to exceed $1bn in revenues — surpassing Elton John’s previous all-time record of $939mn — and continues next year. Beyoncé’s Renaissance tour was this year’s number two, earning $580mn.But the gender imbalance still skews towards males. Only one other woman, Pink, was in 2023’s top 10 touring acts. Swift and Beyoncé are in a league apart, earning appreciably more per show than other stadium acts. Pink and Madonna may feature in 2024’s box office charts, but male acts such as Coldplay, Bruce Springsteen and the Rolling Stones will continue to dominate. Ludovic Hunter-TilneyWill Britain return the Parthenon marbles to Greece?Yes — although it will almost certainly be via a loan agreement, not a full return which would require a change in UK law. Political tempers flared this year when Rishi Sunak abruptly cancelled a meeting in London with Greek premier Kyriakos Mitsotakis. But British Museum chair George Osborne has strongly advocated a deal to allow the marbles to be displayed in Athens, with other Greek treasures coming to London in return. The Labour party’s Keir Starmer has hinted he would not block an accord acceptable to the museum and to Athens. Jan Dalley Tiebreaker: How many medals will the host France win at the Paris Olympics? Bid for lunch with your favourite FT journalist and all proceeds go to the FT’s charity, the Financial Literacy and Inclusion Campaign More

The increase in the minimum wage represents a hike of 140,000 pesos ($36.63) per month.The wage increase comes as the country battles persistently high inflation and an ailing economy. Twelve-month inflation to the end of November hit 10.15%.The increase for 2024 is less than the rise in the minimum wage in 2023, when the government reached an agreement to boost it by 16%. The increase for 2024 was not agreed with business leaders, despite meetings between the government and industry groups, Ramirez told journalists. “There were discussions and movements by the parties, but they were not enough to reach an agreement,” Ramirez said, adding that 10 meetings took place in search of an agreement. The lack of agreement, however, has no impact on implementing the new minimum, which is set by the government.Business associations and workers’ unions had managed to reach an agreement with the government on minimum wage increases for 2022 and 2023.The hike to the minimum wage comes as Colombia’s economy stalls. The central bank’s technical team had hiked its 2023 growth outlook to 1.2% at the end of October, but the economy shrank 0.3% in the third quarter versus the year-earlier period, prompting bank chief Leonardo Villar to warn that the forecast was unlikely to be met. ($1 = 3,822.05 Colombian pesos) More

The changes would not look to increase overall tax take, Petro added. The fiscal reform, approved by Congress, looked to increase tax take by some 20 trillion pesos ($5.23 billion currently) in 2023, with more money to fill government coffers in subsequent years.However, the goal was hit by a decision by Colombia’s Constitutional Court which eliminated a law preventing businesses in extractive industries from deducting royalties from their taxable income. “I invite the business community to discuss the possibility of reforming the tax reform, I think it is time to see the impact of what was approved in Congress in this government and see it in terms of production,” Petro told journalists.The reform needs reexamining to boost productivity, Petro said, adding that a change to the reform could see corporate tax rates fall while taxes on the highest paid individuals could increase.In November, Petro said that the Constitutional Court’s ruling would reduce Colombia’s tax income by about 6.5 trillion pesos ($1.7 billion) in 2024.($1 = 3,822.05 Colombian pesos) More