Colombia has a track record of prudent macroeconomic and fiscal management, anchored on an inflation targeting regime, a flexible exchange rate, and a rule-based fiscal framework, which enabled the economy to grow uninterrupted since 2000 and provided policy space to respond to the COVID-19 crisis.
Colombia’s economy has recovered vibrantly from the COVID-19 crisis supported by a bout of consumption that had been repressed during the pandemic. GDP rebounded 10.7 percent in 2021 and it is projected to grow 7.1 percent in 2022. This exceptional dynamic has brought the economy to operate above its potential and, growth is projected to slow gradually to 2.8 percent by 2025.
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