Colombia's Economic Growth Slowed In Q3

• Colombia's economic growth is likely to have slowed in the third quarter of the year due to more moderate domestic consumption amid rising interest rates and rampant inflation. According to the median of 15 analysts' estimates, Latin America's fourth-largest economy expanded by 6.7% between July and September.
• Despite the slowing, the median forecast was slightly higher than projections by the country's central bank, which estimated third-quarter economic growth at 6.4%. "Although the economy still shows symptoms of powerful aggregate demand, there is slowing as consumers become more cautious as inflation continues to put pressure on their wallets, and entrepreneurs assume higher financing costs," said Wilson Tovar, chief economist for brokerage Acciones y Valores.
• Colombia's central bank has hiked its benchmark interest rate to 11%, the highest level in 21 years, in a bid to slow inflation. The Andean country saw 12-month inflation hit 12.22% in October, the highest level since 1999.
• Median estimates suggest Colombia's economy could grow by 7.70% this year before slowing to 1.60% in 2023, as central banks raise rates around the world to cool inflation. The Central Bank is expected to continue hiking rates at least until the first quarter of 2023 and right up to levels close to 12.5% or 13% as there are no signs of inflation slowing in the economy.

(Source: Reuters)