August 15, 20 - 10:24 am - LABS

Colombia’s GDP falls by 15.7% in the second quarter

Colombia’s economy registered the worst contraction in its history in this years’ second quarter, according to data released on Friday by the country’s National Administrative Department of Statistics (Dane).

Colombian GDP fell 15.7% in the second quarter compared to 2019, within market expectations, which estimated a fall of 15% to 17% in the period between April and June. Between January and March, the country’s economy had grown 1.4%, according to revised data released by the agency – before the COVID-19 pandemic, Colombia had the fastest-growing economy in Latin America.

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Dane’s director, Juan Daniel Oviedo, explained to La República newspaper that trade, manufacturing, civil construction, transportation, food services, and vehicle repair were the sectors most affected by the pandemic and, therefore, responsible for the fall.

The International Monetary Fund (IMF) predicts that Colombia’s economy will end 2020 with a 7.4% drop. The country’s central bank is more pessimistic and projects a fall of 8.5%.