"Mac Master warns about economic risks ahead of the Business Congress in Medellín."

Bruce Mac Master, president of the National Business Association (ANDI), is on the cusp of a crucial event for the Colombian business sector: the Colombian Business Congress taking place in Medellín. With a career that has taken him from the upper echelons of government to the inner workings of the business world, Mac Master is not unfamiliar with the economic challenges facing the country. In his statements, he has expressed concern over the tax reform proposed by the government, warning that it could lead Colombia into a recession. Mac Master’s concerns are based on analyses conducted by ANDI regarding the impact of previous tax reforms. According to their calculations, the reforms implemented in 2021 and 2022 have had negative effects on investment, contributing to the country experiencing two years without significant growth in this area. This stagnation in investment is alarming, especially considering that the national budget has seen a notable increase, while the results in terms of future investment have been discouraging. For Mac Master, an underfunded budget could lead to a new tax reform requiring 12 trillion pesos, a measure that could further exacerbate the country’s economic situation. The challenge facing the country lies, according to Mac Master, not only in the figures but also in the growing uncertainty surrounding the Colombian economy. The difference in interest rates that Colombia pays to creditors compared to countries like Peru and Chile is a sign that confidence in the country is declining. This uncertainty translates into an unfavorable environment for investment, where businesspeople feel pressured and reluctant to risk capital in a volatile economic context. Mac Master emphasizes the need for Congress to urgently address these issues before a budget is approved that could result in higher deficits and the consequent need for more taxes. Regarding the government’s recent proposal to establish a "credit agreement," Mac Master has expressed his support, noting that such initiatives are necessary to channel funds to sectors in need of support. While acknowledging the government’s efforts to prevent what could have been a financial catastrophe, he also warns about the importance of maintaining clear and constructive dialogue on economic policies. For him, the lack of decisions in key areas, such as the energy sector, has only exacerbated the crisis, leaving investors in uncertainty. Mac Master does not hesitate to point out that, while there are positive aspects in the government's economic management, such as the rise in fuel prices, there are also serious obstacles that must be overcome. The lack of investment in crucial sectors like health and housing is concerning, and the government’s strategy to reform these sectors has been criticized for not being inclusive or effective enough. The elimination of housing programs that had proven effective has led to stagnation in a sector that is vital for the economy. On labor reform, Mac Master has expressed his dissatisfaction with the lack of social dialogue, which he considers fundamental for any significant change in this area. The breakdown of communication between the government, employers, and workers has resulted in proposals that, according to him, do not address informality or generate employment. This situation has raised concerns in the business sector, where it is expected that any labor reform respects the principles of concertation and collaboration. As the Colombian Business Congress approaches, the presence of President Gustavo Petro remains uncertain. Mac Master has expressed his hope that the president will participate in the event, as he believes dialogue is crucial to address the issues affecting the country. In his view, it is essential for political leaders to focus on economic and social development and not get lost in the political polarization that has characterized recent years in Colombia. In this context, Mac Master’s message is clear: the country needs a return to stability and confidence. Polarization and political drama should not divert attention from the structural issues that need to be debated and resolved. Overcoming poverty, inequality, and sustainable development must be the focus of all political and economic actors. The upcoming Business Congress therefore presents a vital opportunity for both the private sector and the government to reflect on the path forward. Mac Master invites all participants to adhere to democratic principles, institutions, and the Constitution, setting aside political distractions. At a time when the Colombian economy faces critical challenges, collaboration and dialogue are more necessary than ever.