Colombia to grow above Latin American average in 2022 and 2023 – IMF

RIO DE JANEIRO, BRAZIL – As part of its update of growth forecasts for the global economy, the International Monetary Fund (IMF) confirmed its latest update on the expected growth of the Colombian economy in 2022.

According to the new report, Colombia’s GDP is expected to grow by 5.8% in 2022, up from 3.8% in the IMF’s October report last year.

Read also: Check out our coverage on Colombia

This forecast will set Colombia apart from Latin America’s performance in the eyes of the IMF, as the country is well above what the multilateral organization expects for the region: growth in the range of 2.5% by the end of the year.

While the average for Latin America would also see GDP growth of 2.5%, the country would grow by 3.6%.Through 2023, the outlook for Colombia remains positive, as growth would continue to exceed IMF estimates for the region: While the average for Latin America would also see GDP growth of 2.5%, the country would grow by 3.6%.

Colombia will stand out from the region’s main economies in terms of GDP growth in both 2022 and 2023, considering that countries such as Mexico and Brazil will grow by 2% and 0.8% in 2022 and by 2.5% and 1.4% next year.

Colombia would also be above average compared to global growth, which will be 3.6% in 2022 and 2023, according to the IMF.

OTHER PROSPECTS

On the other hand, the IMF also gave other macroeconomic perspectives for Colombia for this year and next. One of the most important forecasts, inflation, is expected to remain above the target range of the Bank of the Republic in 2022 and 2023.

By 2022, inflation would be 7.7%, while next year it would reach 4.2%.

As for the rest of the economies, inflation is one of the most pressing issues for Colombia that the IMF believes needs to be addressed. Food inflation could continue to weigh on the country’s growth prospects.

In addition, according to the IMF, the unemployment rate in Colombia will remain in double digits in both 2022 and 2023, with figures of 11.9% and 10.6% for next year.

Finally, as the IMF has already indicated, it is closely monitoring the uncertainties that will continue to arise in connection with the presidential election campaign in Colombia, which will not be resolved until the second half of 2022.