Colombia Economic Outlook. Second quarter 2021

Summary

In 2021 and 2022, economic growth for Colombia will benefit from the improvement in the global dynamic and the internal recovery, despite of the negative impact of lockdowns and the fiscal reform. Inflation will gradually converge towards its target, allowing the Central Bank to maintain an expansionary monetary policy.

Key points

• Key points:
• A greater dynamic in global growth is expected due to fiscal impulse and progress in vaccination
• Colombia will face new waves of contagion, amidst the challenges of mass vaccination
• Colombia's economic growth will be favored by higher growth in the U.S. and better oil prices
• Fiscal reform will have effects on activity, exchange rate and sovereign rating
• Higher inflation, improved activity and higher global interest rates will be factors to be monitored by Banco de la República

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