OECD forecasts economic slowdown in Colombia next year

The Organization for Economic Cooperation and Development (OECD) forecasts growth of 8.1% of the economy in Colombia this year. However, it estimates that by 2023 it will suffer a slowdown

The OECD published on Tuesday its economic growth prospects for the end of 2022 and for 2023 in Latin America. In the case of Colombia, it foresees an economic growth of 8.1 %; however, it notes that it will experience a slowdown next year.

According to the Organization for Economic Cooperation and Development, in 2023 GDP will increase by 1.2 %, considerably below forecasts. With respect to 2024, a growth of 1.7 % is estimated.

The OECD report points to a moderation in consumption and investment. Regarding the domestic and business environment, he highlights the consequences of inflation and high interest rates, as well as “uncertainty about the economic outlook and economic policy.”

Regarding monetary policies, he points out that they will continue to be strict in Colombia. A positive aspect is the forecast of a recess in the increase in interest rates that the Banco de la República has been applying since last October.

The OECD estimates that “increased government revenue will reduce the budget deficit under current spending plans, which include a necessary increase in social spending.”

Colombia is currently facing the consequences of high inflation, increased interest rates, depreciation of the peso against the dollar, and uncertainty among the population regarding State policies.

M.Pino

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Source: finanzasdigital

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