He Monetary Policy Report (IPM) of the Bank of the Republic said that the forecast for the end of the year of the Total inflation fell to 5.3% (previously 5.7%) and that of the Basic inflation (without food or regulated items) stood at 5.1% (previously 5%).
In a similar way to what was estimated in the previous report, total inflation would continue its convergence process towards the target at the end of 2025. This projection includes an upward revision in the annual variation of the regulated ones, which would end in 2025 at 4.5% (instead of 3.2%), due to the damming of increases in some components of this basket that would occur next year, in an environment of high uncertainty in the supply of some public services.
The WPI mentions several factors that would continue to contribute to maintaining the downward trend in inflation towards the target, to place it at 3.1% at the end of 2025.
(Read also: ‘It is essential to improve educational quality and dignify teaching work’).
GDP
The estimated economic growth for 2024 and 2025 increased from 1.8% and 2.7% to 1.9% and 2.9%respectively.
(We recommend: Economy would be moving more by consumption than by reactivation).
In it second quarter annual GDP growth (1.8%) was similar to what was estimated, with internal demand that completed three quarters with increases in its level and that grew annually more than projected (1.6% compared to the estimated 0.3%), mainly due to the behavior of consumption (1, 6% compared to the estimated 0.2%).
Economic activity figures for the third quarter suggest that the economy would have grown at an annual rate of 2.4%equal to that contemplated in the July MPI. This forecast, which takes into account the temporary supply shocks recorded in August and September (blowing up of oil pipelines, problems in oil refining and strikes of transporters), suggests that domestic demand would have continued to accelerate, both due to consumption and investment. . In the remainder of 2024 and towards 2025, levels of economic activity would continue to recover.
HOLMAN RODRÍGUEZ MARTÍNEZ
Portfolio Journalist
