Colombia’s GDP growth for 2024 was 1.7%, slightly below projections, following a year of weak economic performance. Key sectors such as oil and manufacturing faced significant contractions, while agriculture showed strong growth. The central bank has maintained high interest rates, and future policies under President Petro could alter economic recovery prospects.
Colombia’s economic growth remained subdued in 2024, with a GDP increase of 1.7%, slightly below the expected 1.8%. This growth is an improvement from the previous year’s mere 0.7%. The fourth quarter saw output rise by 2.3% year-on-year, yet sectors like oil and mining fell sharply by 5.2%, and manufacturing declined by 2.1%.
Agriculture and entertainment services drove growth, both posting significant 8.1% increases, with coffee-related activities soaring by 22.5% due to high market prices.
President Gustavo Petro, who took office in 2022, promised to phase out the oil and coal sectors, which are crucial to Colombia’s economy. He has halted new oil exploration licenses despite pressures from various economic stakeholders to stimulate growth.
In regulatory measures, the central bank has resisted calls for a rapid reduction of interest rates to support the economy, after suspending the easing cycle due to ongoing inflation concerns. The appointment of two new board members by Petro could influence a shift towards a more accommodative monetary policy. The finance ministry projects a 2.6% economic expansion for the coming year.
In summary, Colombia’s economy continues to struggle with low growth attributed to declines in key sectors like oil and manufacturing, despite some positive contributions from agriculture. President Petro’s energy policies and the central bank’s cautious approach towards interest rates are influential factors in the current economic environment. Future growth may be influenced by upcoming changes in monetary policy and market conditions.
Original Source: www.livemint.com
