Colombia | After the storm comes the economic recovery

Summary

After inducing the economy into a coma in the second quarter of 2020, with a GDP contraction close to 16%, the economy resumed a recovery trend in the third and fourth quarters. In 2021, the economy is estimated to grow 4.8%, as more activities and more people normalize their behavior.

Key points

• Key points:
• According to DANE, the economy contracted 6.8% in 2020. This contraction is higher than the 4% contraction of the crisis of 1999.
• In 2020, housing sales quickly returned to pre-pandemic levels and even surpassed them, and remittances closed the year at record highs.
• The second wave of contagions showed that we learned to live with the risks and the stress of the health system, and we managed to overcome a more intense wave with less economic impact.
• The recovery will be seen more in the consumption of goods than in services, while investment will play a central role.
• The main efforts of public policy and the business fabric should focus on restoring formal employment.

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