Colombia's Economic Growth Sees Boost from Agriculture and Arts

Colombia's economy grew 2.3% in Q3 2024, driven by agriculture and arts. The central bank projected slightly higher growth. Despite high interest rates and inflation above target, growth is modest. Future projections for 2024-2026 are optimistic, with expectations for continued economic recovery.

In a promising development, Colombia's economy is expected to have expanded by 2.3% in the third quarter of 2024 compared to the previous year, buoyed by notable advancements in agriculture, arts, and a recovery in the industrial, trade, and construction sectors. This projection comes from a Reuters poll conducted with insights from 19 economists.

The surveyed experts anticipate a slight upsurge in the growth rate compared to the 2.1% recorded in the second quarter, estimating a quarter-on-quarter increase of 0.30%. Data from the country's statistics agency, DANE, scheduled for release on November 18, will confirm the actual growth figures.

Despite a substantial reduction in the central bank's benchmark interest rate, which still hovers at a high 9.75%, Colombia's economy demonstrates resilience in its upward trajectory. Inflation remains a challenge, reporting 5.41% in October, surpassing the central bank's ideal rate of 3%. Looking ahead, growth expectations for 2024 have increased slightly to 1.8%, with long-term forecasts maintaining a positive outlook through 2026.

(With inputs from agencies.)