In Colombia, economic recovery has been solid, with risks stemming from the labor market and higher-than expected inflation. GDP grew 10.6 percent in 2021 and is projected to grow 4.4 percent in 2022, the poverty rate is projected to decline relative to 2021. The recovery helped reduce the fiscal deficit. A sustained reduction of the debt-to-GDP ratio is an important policy priority along with increasing the effectiveness of the fiscal system at reducing poverty and inequality, and diversifying exports.