GDP of Colombia in 2023 - Expenditure Approach, Sector Output, and Regional GDP

Colombia is expected to enter a technical recession due to domestic monetary policy tightening and high inflation. Political stability is likely to be maintained due to Mr. Petro’s pragmatism, but the policy outlook is uncertain, which will keep investment subdued in 2023. External demand for Colombia’s exports will weaken due to a global economic slowdown, and the negative impact of monetary tightening and high inflation on private consumption will only be partially offset by increased social spending. As a result, GDP growth is expected to decelerate from 7.6% in 2022 to 2.2% in 2023, followed by a modest recovery starting in the second quarter of 2023. Although the global and US economies are expected to recover modestly in 2024, weak private investment is likely to preclude a more robust recovery, and real GDP growth is expected to average 3.2% per year after 2023. Mr. Pe...