Colombia | Beyond Consumption: Nourishing Colombia's GDP with Investment

Summary

The growth of the Colombian economy was exceptionally low in 2023, registering at 0.6%. The primary culprit for this outcome was the steep decline in investment. Concerns extend beyond the short term, as the low investment rates will constrain the future productive capacity of the economy and curtail its competitiveness.

Key points

• Key points:
• If the pace of investment does not accelerate soon, we may encounter installed capacity thresholds that foster subsequent inflationary shocks and diminish the country's potential GDP. Addressing this issue should commence promptly, yielding short and medium-term benefits.
• A hastened pace in infrastructure development would support short-term employment and GDP growth, offsetting the anticipated lackluster performance in the first half and solidifying the recovery by year-end. Simultaneously, it would enhance the country's productivity by connecting remote and productive areas with major consumption centers, paving the way for expanding export capacity in the long run.

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