Following last year’s exceptional results, 2023 will present a necessary and desired slowdown in economic growth. Thus, according to BBVA Research projections for Colombia, the national economy will have growth of 0.7% this year and 1.8% in 2024. According to analysts, these levels place the economy on a more sustainable path. growth in the medium term, which reduces current macroeconomic imbalances and helps reduce inflation.
“During this year the economy will grow 0.7%, a result that will be led by public consumption, which will increase 5.9% in 2023 and 4.4% in 2024, in addition to the greater execution of civil works in 2023, the recovery of non-residential buildings in 2024 and the permanence of export growth in the next two years. On the contrary, private consumption could have a slight drop during 2023, to then slowly recover throughout 2024,” said Mauricio Hernández, BBVA Research economist for Colombia.
According to the report Situación Colombia, of March 2023, in terms of prices of goods and services, a gradual reduction in total inflation is expected, from 13.1% in 2022 to 9% in 2023 and 5.0% in 2024, driven by a sharp drop in food inflation, which will go from 27.8% in December 2022 to 7.6% in December 2023.