Colombia Rises From Contraction to Growth
Colombia Rises From Contraction to Growth

Colombia Rises From Contraction to Growth

Colombia Rises From Contraction to Growth

Colombia, a country whose economy has enjoyed a rebirth since the economic catastrophe of 1999, is a nation full of optimism. This millennium, its GDP per capita has increased three-fold, poverty halved and GDP growth averaged at 4.26% year-on-year.
This week, the World Bank set Colombia’s growth expectations for the year to 2.5%, which is a rate twice that of the Latin American average; a region coming off the back of two consecutive years of contraction at -1.4% due to depressed commodity prices, as well as geopolitical problems in the region’s most prominent economies, The Market Mogul reported. 
Colombian exports account for approximately 5.9% of total economic output and, like many emerging market economies, the country’s predominant export is oil, at approximately 55%. A 70% collapse of WTI crude oil prices between 2014-2015 threatened to stifle a decade of economic progress; Colombia’s external debt grew to 33% of GDP from 25% the year prior, government revenues fell by around 2.1% of total GDP, and the Colombian peso remains to this day around 37% weaker against the dollar.
This has been an annoyance for Latin America’s fourth-largest economy, but unlike neighboring Venezuela, this has not resulted in crippling hyperinflation and a wide-spread shortage of basic goods. Instead, the government has been proactive in dealing with infrastructural issues while the central bank is continuing to reduce inflation to its target of 3%, a strategy in place since 2004.
Investor confidence also remains high. Total direct foreign investment into Colombia stands at ten times the figure a decade ago. 

Short URL : https://goo.gl/DJIKFG
  1. https://goo.gl/zjKmbH
  • https://goo.gl/weoQTh
  • https://goo.gl/att78k
  • https://goo.gl/7Tnxaz
  • https://goo.gl/HsLKBs

You can also read ...

Capital Economics forecasts Turkey’s GDP growth will fall to 3.5% in 2018 from 7.4% in 2017.
Expectations for Turkey's end-2018 inflation rate rose from 12...
Trump Tactics Sabotaging US Economy, Markets
Wall Street could be making a costly mistake. According to...
Apple Watch Smells Losses
The latest round of US tariffs on $200 billion of Chinese...
File photo of finance ministers and central bankers from the G20 nations.
Global economic growth is poised to pick up this year, though...
Italian Bonds, Stocks Fall
Italian bond yields rose and equities sold off on Friday after...
Technology Can Help Workers From the Informality Trap
Technology and what it will do to change how people work is...
Moody’s Warns Philippines of Downside Risk
Debt watcher Moody’s Investors Service on Friday said the...
A weaker yuan remains a source of risk for global currency markets.
The Chinese yuan slid to its lowest in more than a year on...

Add new comment

Read our comment policy before posting your viewpoints