(Updates with extra details, context)

March 23 (Reuters) – Colombia’s economy is at the moment undergoing a transition toward a much more sustainable development path, the International Monetary Fund stated Thursday, highlighting tightened macroeconomic policies, slowing worldwide development and greater borrowing fees.

A “required” cooling of Colombia’s economy would aid bring inflation toward the central bank’s target by the finish of 2024 and narrow the present account deficit progressively, the IMF added.

On the other hand, some downside dangers persist and stay elevated, the fund stated.

Directors of the IMF, which concluded a consultation with Colombia on Wednesday, commended the South American country’s “decisive” monetary policy tightening, which it deemed constant with targeting inflation.

The directors “welcomed the commitment to keep a tight monetary stance till value pressures and inflation expectations are on a firm downward trend,” the IMF stated.

A two-year, practically $9.eight billion versatile credit line authorized by the IMF in April has offered Colombia “extra external buffers” and enhances the country’s resilience, the IMF added. (Reporting by Kylie Madry Editing by Brendan O’Boyle and Sarah Morland)