After the Colombian economy reaches its minimum growth this year, less than 1 percent according to the consensus of various analysts, as a result of the global and local slowdown, the country will begin its recovery path that will take it to levels of 1.8 percent. in 2024. The projection is from analysts of the bbva research colombia, who see that the cost of living in the country will slow down to levels of 9 percent in December.
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This year the Colombian economy will grow 0.7 percent, driven by the public consumption, which will grow 5.9 percent and 4.4 percent in 2024, said Mauricio Hernández, an economist at BBVA Research Colombia, who does not see a greater contribution to this dynamic of private consumption, since it will have a slight drop this year.
What the expert is seeing is that although the slowdown of the ‘Creole’ economy It will be tough, after last year’s notable growth (7.5 percent per year), it still has a way to defend itself.
And he mentions that currently the labor market has gained in terms of formality -more than 800,000 people entered formality in 2022-; fiscal spending divides this year, not only due to the larger national budget, but also due to the high execution of own spending at the end of the terms of mayors and governors.
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🇨🇴 In the presentation of the #SituationColombia March 2023 🗓️ we review the key points of the #economy global and national. Download the report on our website 👇
— BBVA Research (@BBVAResearch) March 15, 2023
Business macro-round at the Pacific Events Center.
Santiago Saldarriaga/El Tiempo
To this is added, according to the expert, the positive global growth and the labor market in the United States remains vigorous, which will favor the arrival of remittances to the country, in a year in which inflation will have a strong destruction favoring the purchasing power to homes.
According to projections by the BBVA team of economists, world growth is expected to reach 2.8 percent this year and 3.3 percent next year. «The recent publication of some positive data on economic activity, which reflect the resilience of demand, and the drop in energy prices favor an upward revision of the GDP forecasts for 2023 in the United States and the Eurozone,» they point out. the entity’s analysts.
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