Economy

Colombia's grows 17.6% in the second quarter, driven by retail and leisure

The country's economy is expected to grow 6.8% this year, according to analysts

People walk in a shopping mall in Bogotá, Colombia, 2019. Photo: REUTERS/Luis Jaime Acosta/ File Photo
  • The expansion in the second quarter was led by retail, including transportation and food services, manufacturing, and construction, which grew 40.3%, 32.5%, and 17.3%, respectively, according to Colombia’s national statistics agency DANE;
  • Leisure expanded 83.8% compared to the second quarter of 2020, while the communications, utilities, and public spending sectors grew 10%, 9.1%, and 9%, respectively.

Colombia‘s economy grew 17.6% in the second quarter of 2021 compared to the same period last year, the country’s (DANE) said on Tuesday.

The GDP of Latin America‘s fourth-largest economy contracted 15.7% between April and June of last year when the country adopted restrictive circulation measures to slow the spread of the novel coronavirus.

“We know we had a 17.6% annual growth in the second quarter, but unfortunately, due to the effects of the protests, we saw a 2.4% contraction from the previous quarter,” said the head of DANE, Juan Daniel Oviedo.

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Colombia‘s central bank has kept its benchmark interest rate at an all-time low of 1.75% since September last year, though analysts and economists believe the board will soon start raising interest rates to rein in inflationary pressures.

The expansion in the second quarter was led by retail, including transportation and food services, manufacturing, and construction, which grew 40.3%, 32.5%, and 17.3%, respectively, DANE said.

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Leisure expanded 83.8% compared to the second quarter of 2020, while the communications, utilities, and public spending sectors grew 10%, 9.1%, and 9%, respectively.

The Colombian economy is expected to grow 6.8% this year, according to analysts. The country’s central bank technical staff raised its full-year GDP forecast to 7.5% from 6% previously.

(Translated by LABS)

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