Colombia’s economy faces sluggish growth in 2024

Significance

Expectations for 2024 suggest lower inflation than last year, but risks persist. The OECD forecasts moderate GDP growth, highlighting inflation and interest rate concerns. Minimum wage negotiations and external factors are prompting caution in economic forecasting. Despite hurdles, however, growth opportunities exist in key sectors.

Impacts

• Central Bank efforts to control inflation are likely to affect growth and create friction between the government and the private sector.
• The government has requested a record budget for 2024, but spending inefficiencies will dim its impact.
• Generous social policies and government sympathy for trade unions will influence fiscal policies and labour reforms.