Colombia’s Q2 Economic Growth Seen At 2.2%

• Colombia's economy is forecast to have grown 2.2% in the second quarter of 2024 from the same period a year earlier, picking up pace from the first three months, a Reuters poll showed on Thursday.
• If the median estimate from 10 analysts is realized, it would represent a significant acceleration from Colombia's 0.1% annual GDP growth in the second quarter of 2023 and the 0.7% recorded in the first quarter of 2024. It would also be higher than the central bank's forecast of 1.8% for the three months to end-June.
• "In general, the economy seems to have bottomed out and we have a very gradual recovery," said Sergio Olarte, chief economist for Colombia, adding that the agricultural sector's performance and increased government spending may have contributed to the growth.
• Colombia's economic growth has been affected by a high benchmark interest rate, currently 10.75%, as well as by stubborn inflation, which stood at 7.18% for the 12 months to end-June, well above the central bank's 3% target.
• The economy was forecast to expand 0.81% in the second quarter of 2024 versus the first. Analysts now see Latin America's fourth-largest economy growing by 1.5% this year, up from 1.3% in the previous survey. For 2025, analysts continue to see GDP growth at 2.6%.

(Source: Reuters)