2023 will not be remembered as a standout year for the economy, neither Colombian nor global. However, Colombia sees hope on the horizon. Despite pessimistic forecasts from political factions opposed to the reformist policies of the new government, the International Monetary Fund (IMF) has positively updated its estimates. It now predicts that the Colombian economy will grow at a rate of 1.4% in 2023, which is 0.4% more than it had projected at the beginning of the year.
According to data revealed by the IMF and corroborated by EFE and Bloomberg agencies, the Colombian economy has a positive outlook compared to previous estimates. In 2022, Colombia experienced a notable increase in GDP of 7.3%. However, for 2023 and 2024, the figures will be 1.4% and 2% respectively. These figures, although lower than previous growth, are higher than previous projections from the same body.
Inflation, a concern for economists and citizens alike, is expected to reach 11.4% this year. However, there are good news on the horizon: this number is expected to significantly decrease to 5.2% in 2024. It is interesting to note that the newspaper La República highlights a “moderation” in inflation projections. In April, the IMF had forecasted inflation figures of 13.1% for 2023 and 8.4% for 2024, so the new projections are undoubtedly an improvement.
The unemployment outlook, another crucial indicator, also seems to be on an improving trajectory, with a rate forecasted at 10.8% in 2023 and a slight decrease to 10.4% in 2024.
Looking beyond Colombia’s borders, the IMF is slightly optimistic about economic growth in Latin America and the Caribbean. The region is expected to grow at a rate of 2.3% in both 2023 and 2024. This optimism is partly based on the economic performance of two of the region’s largest economies: Brazil and Mexico.
In summary, despite the challenges and uncertainties surrounding the global scenario, Colombia and indeed all of Latin America seem to be on an upward economic trajectory. And while it is essential to keep monitoring these indicators, there are reasons for optimism and hope for the economic future of the region.
