Colombia | The path of gradual recovery with great opportunities and challenges

Summary

Colombia is already in the process of recovery. Low interest rates and government policies will help reactivate private demand. The fiscal effort should focus on the activities with the most impulse over the others.

Key points

• Key points:
• Consumption has been recovering gradually, with reversoparcial in August on behalf of regional quarantines
• Employment has gradually recovered since May when the strict quarantine ends.
• Countercyclical policies and lower revenues increase the government deficit in 2020 and 2021
• By the end of 2022, the level that GDP had in 2019 will recover
• Banrep would leave the interest rate stable until mid-2022

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