Colombia's economy would grow the most in Latin America until 2021

In a new report, the risk rating agency Standard and Poor's predicts that the Gross Domestic Product will grow by 3.2% in 2019, 3.2% in 2020 and 3.3% in 2021.

Colombia's economy: for Colombia, the risk qualifier estimates that GDP will grow by 3.2% in 2019, above economies such as Brazil, Mexico, Chile and Peru. Photo: El Informador
Colombia's economy: for Colombia, the risk qualifier estimates that GDP will grow by 3.2% in 2019, above economies such as Brazil, Mexico, Chile and Peru. Photo: El Informador

In the midst of a sharp global slowdown in Gross Domestic Product (GDP) growth and the worst migration crisis ever experienced in Latin America, Standard and Poor's (S&P) estimates that Colombia's economy will grow the most between now and 2021.

According to the international firm, 2020 will be another year of low growth for Latin America "because many economies in the region are showing some of their lowest growth rates since the global financial crisis.

In this regard, for Colombia, the risk qualifier estimates that GDP will grow by 3.2% in 2019, above economies like Brazil, Mexico, Chile, and Peru.

For 2020, it projects that the national economy will register a growth of 3.2%, while for 2021 and 2022, it will be 3.3%.

"Our 2020 GDP growth projection is unchanged at 3.2%, supported by the recovery of oil production and stable growth in the services sector," the S&P report stresses.

It also stresses that, amid the challenging fiscal and public debt dynamics in most Latin American countries, "monetary policy will remain one of the main tools for stimulating growth.

Other countries in the region

The firm revised downward its 2020 GDP growth projections for Mexico (to 1.0%), Chile (to 2.4%), and Peru (to 2.8%).

"We continue to expect the Brazilian economy to improve in 2020, with GDP growth of 2%, from 0.8% in 2019, driven by the impact that the push of recent reforms will have on investment," it adds.

However, the GDP growth projection for next year represents a moderate improvement from 0.5% in 2019, mainly due to conditions of greater monetary flexibility at home and abroad.

In addition, in some cases, it considers that "the effects of policy shocks, such as delays in public investment associated with the transition of government in Mexico, are diminishing.

By Mexicanist