Colombia | GDP of 2020: economic recovery continued at a good pace

Summary

GDP declined 6.8% in 2020. In the major demand groups, only government consumption grew and, in the productive branches, four out of twelve expanded. The economy had a sustained recovery since the third quarter that will be consolidated in the second half of 2021. GDP growth of 4.8% is expected in 2021.

Key points

• Key points:
• In the fourth quarter of 2021, the GDP result was still below the level of a year ago. However, the rate of decline was slowing.
• The economic recovery will consolidate especially in the second half of 2021, as it is estimated that the most vulnerable population will already be vaccinated by that time.
• Acceleration in housing construction and improvements in the labor market will be important for the economic recovery.
• Growth of 4.8% is expected in 2021, partly driven by a deep statistical base effect from 2020 and, to a lesser extent, by the progressive dynamics of the economy.
• In 2022, the recovery will consolidate at 3.8%, more explained by GDP growth at the margin and less by the statistical base.

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