‘We are achieving economic reactivation’: Petro, on the GDP result

After the National Administrative Department of Statistics (DANE) will reveal this Thursday the result of the growth of the gross domestic product (GDP) of the country in the second quarter of the year, the President Gustavo Petro He said the positive result of 2.3% is a sign that the economy is recovering.

“We are achieving economic reactivation in Colombia. The reactivation is caused by the reduction of the real interest rate, by the exceptional growth of agriculture and by the government’s activity in health and education.“, said the head of state on the social network X.

(You may be interested in: Colombia’s GDP for the second quarter of 2024 grew by 2.1%).

He also highlighted the results of various sectors of the national economic fabric, such as agriculture, investment and tourism: “The growth of agriculture is exceptional, reaching almost 11% annual growth; however, as I pointed out during the campaign, coal is collapsing. The change in the economic model away from fossil fuel extraction towards production in agriculture and industry plus tourism is already evident. Investment is growing by 4.3%.“.

Other reactions

The infrastructure sector, one of the most important in the national economy, but at the same time one of those that has fallen the most in the last four months in terms of growth, acknowledged that the risk of a recession is “dissipates“, however, They point out that the sector is still in decline.

(You may be interested in: Will the Government comply with the 2025 Budget?: this is what the manager of Banrep says).

“The risk of recession in the economy is dissipating. However, according to the Dane, the GDP of buildings (-2.8%) completed 4 quarters of falls. The Habitat Pact for Reactivation is urgent so that housing drives economic and employment growth“, assured the Colombian Chamber of Construction (Camacol).

The statement was also made President of the Colombian American Chamber of Commerce (AmCham Colombia), María Claudia Lacouturewho assured that the result, as well as that of the current year (1.5%) is “a breath of hope, but it is still insufficient in the face of the great challenge of #growth that the country faces“.

“Although household consumption grew by 1.6% and fixed investment by 4.3%, the government’s final consumption expenditure, at 10%, is unsustainable given the current fiscal fragility. At AmCham Colombia, we insist on the need for austerity in public spending and efficiency in investments, prioritizing productive projects that reactivate the #economy.“, he added, on the same social network.

The director of the National Planning Department (DPN), Alexander López Mayasaid that this result translates into “good news” for the country, highlighting the results of the agriculture, health, public administration, and artistic activities sectors.

(You can read: The facts that would be hitting the Colombian and Latin American economy, according to ECLAC).

“Despite seasonal fluctuations, continued GDP growth demonstrates stability and resilience in the economy, which is vital to maintaining investor and consumer confidence.“, he noted.

Juan Daniel Oviedo, Bogotá councilor and former director of Daneexpressed his skepticism regarding what the President had said, revealing several figures.

“The bad thing is that domestic demand (private consumption + public consumption + total investment) is down, that is, at a level lower than in 2022-III. The worst thing is that in order to talk about reactivation, it is essential to achieve the recovery of investment. And that’s where we fail! For every $100 of investment in 2022-III, only $71 was invested in 2024-II, 29% less.“, he assured.

PORTFOLIO