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Petro Quietly Dials Back Radical Ambitions: Colombia Market Talk

  • Broad coalition means Petro will aim for more moderate plans
  • First to test the new government’s support will be a tax bill
Gustavo Petro

Gustavo Petro

Photographer: Andres Cardona/Bloomberg

President-elect Gustavo Petro is quietly dialing back some of his more radical ambitions as he faces the reality of governing Colombia amid soaring inflation and a gaping fiscal deficit, according to political and financial professionals who spoke with Bloomberg.  

The new congress, which began sitting this week, is set to debate a tax bill to fund welfare spending and cut the deficit. The government wants to boost revenue by the equivalent of as much as 5 percentage points of gross domestic product.