At the beginning of 2023, global and regional economic forecasts were quite bleak, especially for Colombia, which had just elected its first progressive left-wing government. However, recent figures from DANE indicate that Colombia managed to navigate through 2023, keeping the economy running during the first full year of the new government.
Colombia’s economic growth in November was 2.34%, and 1.01% between January and November 2023. This growth, though modest, exceeded expectations and eased fears of a recession. This can be considered a triumph for a government around which traditional analysts had predicted a debacle.
Challenges in Key Sectors Going into 2024
Sectors like construction and consumption faced significant challenges. Consumption, in particular, experienced a notable decline, affected by factors such as high-interest rates that impacted purchasing power, especially in durable goods. The construction sector also showed less favorable dynamics, with a decrease in housing demand and a slowdown in infrastructure projects.
Despite these challenges, the Colombian economy showed resilience. The current administration has implemented policies to strengthen the economy, including reindustrialization initiatives and microcredit programs like CREO, aimed at boosting the popular economy and combating informal and usurious lending practices.
The key to Colombia’s sustained growth lies in economic diversification and investment in strategic sectors. Reindustrialization is a promising element, focusing on sectors such as renewable energy, technology, and agribusiness, with the aim of diversifying the economy and increasing competitiveness in the global market. With a focus on effective and adaptive policies, Colombia can continue on its path toward more inclusive and sustainable economic development.
