Colombian economy will grow 6 % in 2022

International organizations such as the World Bank and the International Monetary Fund published their estimates of economic growth for Latin American countries, where Colombia stands out with growth in the order of between 4 % and 6 % by the end of this 2022.

According to the World Bank, the Gross Domestic Product (GDP) of Colombia will register a growth of 4.1 % by 2022, which is equivalent to less than half of the figure registered last year. However, according to the projections of the financial entity, Colombia would be leading economic growth in Latin America, immediately followed by Paraguay with 4 %, Costa Rica and Bolivia with 3.5 % each.

The financial entity highlights that the country’s slowdown this year will be marked by the “fading of the investment drive of 2021 and factors such as the tightening of fiscal and monetary policy, which will affect the entire region.“

For its part, the International Monetary Fund projected, in its update published at the end of March, a growth of 5.75 % for 2022, compared to the 4.5 % estimated in its first version in January of this year.

The IMF report indicates: “Colombia’s economic recovery in 2021 was one of the most dynamic in the region. After a strong economic rebound last year, Colombia’s economic momentum is expected to continue in 2022. Growth this year is expected to be above potential by around 5¾ %, driven by strong household consumption and the continuous recovery of investment and exports.”

Recovery of key sectors for the economy

In 2021, Colombia registered a record boom of 10.6% in its economy, but according to the projections made by the Banco de la República and other estimates made by public and private entities, the Gross Domestic Product (GDP) of the country could grow between 4 % and 6 % in 2022.

The Colombian Ministry of Finance foresees in its Financial Plan for 2022 a growth of 5 % for this year, while the Banco de la República forecasts a growth of 4.3 % for 2022.

As will be remembered, the Covid-19 pandemic strongly impacted the Colombian economy, which experienced a 7 % drop, according to data provided by DANE. However, in 2021 the recovery was remarkable and the “GDP growth was 10.6 %, the highest since 1975.”

Within the economic sectors that registered an upturn in their growth, the manufacturing industry stands out, which went from a fall of 9.8 % in 2020 to a growth of 16.4 % in 2021.

The construction sector was also positively impacted and managed to increase by 5.7 % in 2021 from a drop of 26.8 % in 2020. These data reveal those key niches in the Colombian market that have managed to recover from the economic contraction and has become a positive figure for the prosperity of the country.

M. Rodríguez

Source: criptoides.com