The Colombian economy: how will it behave in the first quarter of 2024?

Department of National Administration of Statistics (DANE) revealed on Wednesday, May 15, statistics regarding the behavior of the Colombian economy in the first quarter of this year.. According to the organization, National GDP grew by 0.7% in the three months to 2024, A slight growth compared to the same period of the previous year.

In the middle of the press conference, Beetat UrdinolaDirector of DANE, Departments recorded good balance between January-March period Public Administration (5.3%), Agriculture (5.5%), Electricity (4.5%) and Artistic Activities (5.2%).

Along the same lines, the official also showed anomalies which showed that the GDP of manufacturing industries decreased by 5.9%. Due to poor performance of activities like food products, tobacco beverages, textile manufacturing etc..

What are the reasons for low growth of national economy?

According to some economists, one of the main reasons for the low growth of the Colombian economy Low consumption, uncertainty in markets, decline in foreign investment and national and international conflicts.

Regarding this behavior, Bruce McMaster, President of ANDI, said that compared to the same period in 2023, Production fell by -6% and these figures indicate a negative outlook, not seen since December 2020. When we were in the middle of an epidemic.

“We emphasize the urgent need to send clear signals that will allow companies to invest in the country, but, in addition, An economic restructuring policy should be urgently formulated and implemented that sends a message of hope and allows the country to think that it is moving towards a path of sustainable development.” said Master, representative of the industrial association.

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What is expected GDP growth in 2024?

Although the data released by DANE proved an increase compared to the data obtained from last year, These figures are much lower than those recorded in the first three months of 2023. Indeed, it is important to note that the previous year was marked by recession Broad economic growth resulted in GDP growth of 0.6% for the year.

Based on the above, the Banco de la Repubblica, through its monetary policy statement presented in April, It estimates that the national economy will post an increase of 1.4% in 2024, which will be driven by consumption despite the poor performance of investors..

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