The Colombian economy faces 2023 with the challenge of preventing the expected economic slowdown – as a consequence of the constant rises in interest rates for prevent inflation from rising be very profound and have an impact on the generation of jobwhich showed signs of recovery this year.
(See: Personal finance: tips to take care of your pocket at the end of the year).
The Gross Domestic Product (GDP) Colombia will grow in 2022 around 8.1% according to the projections of the Organization for Economic Cooperation and Development (OECD), and it will fall to 1.2% in 2023, to rise again slightly to 1.7% in 2024.
That slowdown will be the largest of Latin American economiesaccording to BTG Pactual.
(See: Economic decline, German eggs and more ‘fools’ of 2022).
Colombian economy would drop in 2023.
iStock
About, recent reports from BBVA Research “they have been announcing a healthy slowdown cycle that the economy will have” in which “consumption will be one of the sectors that will demonstrate the change in trend (…) especially in the case of spending on goods.”
“Private consumption will lead the economic slowdown: households will begin to make fewer spending decisions, partly because of the incentives to save given by higher interest rates”, projects BBVA.
The interest rate hike cycle, which started at the end of 2021, is expected to take them as high as 12%, the highest rate in 20 yearscontinue in the first months of 2023 because, according to the Bank of the Republic (monetary authority), “inflation expectations continue to be above the target at all horizons”, after closing this above 12.5% interannual rate until November.
(See: Design your financial plan for 2023 with these five ‘tips’).
“The possible reduction in family income or the fear that it will be reduced by a less buoyant labor market will lead more members of the household to seek
job”he pointed For his part, Mauricio HernandezBBVA Research economist for
Colombia.
(See: savings vs. debts: when it is good or bad to borrow or save).
EFE
