Colombia | Recovery in the middle of a challenging environment

Summary

The greater dynamics in global growth is an important factor in the economic recovery process in Colombia, which presents favorable growth in the first quarter of 2021. However, recent economic and political events have created new challenges for the economy and employment generation.

Key points

• Key points:
• The greater dynamics in global growth, mainly in the United States, is due to fiscal impulses and advances in the vaccination process.
• In the first quarter, Colombia's GDP grew 1.1% annually and 2.9% quarter-on-quarter, with improvements in all demand components and a more pronounced acceleration in investment and exports with more stable consumption.
• The main challenges in the recovery process consist of the productive affectation due to the blockades caused by the protests, the sovereign rating, and the adjustment towards fiscal sustainability.
• Uncertainty and challenges for the country are high, but a benign scenario of a slightly faster recovery should not be ruled out.

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