Colombia

RGE's Q1 2010 Colombia Outlook

Net exports will likely have a negative impact on growth as real imports grow faster than imports this year. Needles to say, growth will remain well below potential (5% y/y). The main risk to RGE’s outlook in the short term is a double-dip business cycle in the U.S. and further deterioration of economic relations with Venezuela, Colombia’s second largest trading partners.

In Q3 2009, Colombia’s economy eased the pace of contraction by declining 0.2% y/y, after falling 0.4% y/y in H1 2009. Sharp contraction in investment (-10.7% y/y vs. -5.6% y/y in H1 2009) and a flat private consumption (0.04% y/y vs. -0.4% y/y in H1 2009) pressured domestic demand down (-1.9% y/y vs. -1.5% y/y in H1 2009), despite a rapid increase in public spending…

Read the Q1 2010 Colombia Outlook.