Colombia | Savings: The cornerstone of economic progress

Summary

Colombia’s domestic savings reached 15.4% of GDP in Q3 2024, driven by the private sector. Yet, the annual average of 11.3% reveals structural challenges. Addressing fiscal imbalances is vital to establishing savings as the foundation for sustainable growth.

Key points

• Key points:
• In the third quarter of 2024, non-financial corporations led private savings with 14.0% of GDP, while households contributed 3.4%, albeit showing signs of weakness. Public sector dissaving, at -3.0%, underscores the pressing need for fiscal adjustments.
• Countries like South Korea and Singapore surpassed 30% of GDP in domestic savings, financing strategic investments and achieving remarkable economic transformations.
• Reliance on external savings heightens Colombia’s exposure to international shocks and restricts its ability to address employment and infrastructure gaps.
• Strengthening domestic savings is essential to boosting potential GDP, reducing economic vulnerabilities, and building a solid foundation for sustainable development.
• Consolidating savings demands a coordinated effort from households, businesses, and the government, prioritizing fiscal stability and fostering high-impact strategic investments.

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