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Growth in Peru and Colombia is the highest in a century

  • In 2021, Peru’s GDP grew by 13.31% (the best result since the beginning of data collection in 1922), and Colombia’s GDP – by 10.6%, also the highest growth in a century (more precisely, the best figure since 1906);
  • The United Nations Economic Commission for Latin America and the Caribbean (ECLAC) predicts that Peru’s economy will grow by 3% this year and Colombia’s economy by 3.5%.

This is shown by two statistics released this week Latin AmericaThe country’s largest economies are on track to recover from the COVID-19 pandemic – the region most economically hit by the health crisis in 2020, recording record cuts.

In 2021, Peru’s gross domestic product (GDP) grew by 13.31% (the best result since the start of data collection in 1922) and Colombia‘s savings grew by 10.6%, also the highest growth in a century (or rather, the best figure since 1906), as economists had already expected.

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Forecasts for 2022 are less encouraging, given the challenge of inflation and, consequently, the fading of the fiscal and monetary momentum of Latin American economies compared to the beginning of the crisis in 2020.

The IMF said this on Tuesday ColombiaRussia’s central bank will need to raise interest rates in advance in the first half of this year to curb inflation and maintain its hard-won confidence.

Indeed, estimates of inflation for Colombia this year grew among analysts polled in a central bank survey. 40 bank analysts surveyed expect inflation to end at an average of 5.44%, above the 4.48% recorded in the January poll, and far from the bank’s long-term goal of 3%. As a result, analysts expect that at a meeting in late March, the bank’s board of seven members will increase the cost of borrowed funds by an average of 100 basis points to 5%.

The UN‘s Economic Commission for Latin America and the Caribbean (ECLAC) predicts that Peruvian savings will grow by 3% this year and Colombians savings3.5%.

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In an interview with Colombian publications, the director National Administrative Department of Statistics (Dane), Juan Daniel Oviedo, explains the strong recovery of four sectors: industry, trade, transport and tourism.

Almost the same sectors have carried out the restoration of Peru. As noted Oxford Economics, the reduction in mining production was offset by strong production growth. In addition, the holiday season has improved the number of restaurants and accommodation.

GDP figures for Mexico and Brazil not yet released. But growth expectations of the two largest economies are lower than in Peru and Colombia: 5% and 4.5% respectively.

https://labsnews.com/en/news/economy/recovery-peru-colombia-gdp/ Growth in Peru and Colombia is the highest in a century

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