The Organization for Economic Co-operation and Development (OECD) estimated that the Colombian economy grow up 5.5% for 2022 and 3.1% for 2023, according to what was announced in the presentation of a new study on the country.
(See: Fall in the country’s fiscal deficit would depend on expenses in recovery).
Among the reasons that the agency argues for its forecast is the solid recovery of the private consumption since the second half of 2020, however, as a consequence of the social protests, “has delayed the longer-lasting recovery in private consumption and investment to the second half of 2021”.
Thus, the OECD projects GDP growth in 2021 of 9.5%, “although heavily influenced by 2020 statistical carryover effects”, and insists on a growth of 5.5% for 2022 and 3.1% for 2023.
(See: Risks in the Colombian peso generated by the next elections).
On the other hand, the body expects the inflation return to values close to the goal of 3 % until the end of 2023. For this 2022 it places inflation at 4.2%.
It also recommends evaluating the interest rate hike if inflationary pressures persist.
(See: Raise US$6.2 billion abroad, the country’s objective in 2022).
“The Colombian economy has recovered remarkably from the COVID-19 crisis, as strong monetary and fiscal policy efforts have managed to prevent a further contraction in revenues.”, highlights the report ‘Economic Studies of the OECD: Colombia 2022’.
“New social programs have protected millions of people from poverty. Medium-term growth prospects depend on reforms to expand social protection and boost productivity”, pointed out the study.
(See: Government increased economic growth forecast to 5% by 2022).
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