Data showing that the Colombian GDP grew at close to 8% annualised in the first quarter of this year, despite the impact of the heaviest rains in three decades, adds to recent evidence that the economy is in rude health. Yesterday’s decision to by Fitch to upgrade the Colombia’s sovereign debt to investment grade (alongside the other major ratings agencies) was just reward for years of orthodox macroeconomic policies. But even so we have a nagging doubt that fiscal policy remains too loose for this stage in the cycle.