Author/Editor:

International Monetary Fund. Western Hemisphere Dept.

Publication Date:

April 17, 2020

Electronic Access:

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Summary:

Before the arrival of the Covid-19 pandemic, Colombia’s economy had remained resilient—owing to very strong policy frameworks, well-executed policies and immigration from Venezuela. External vulnerabilities increased, however, alongside wider external imbalances. Strong internal demand lifted economic growth to 3.3 percent in 2019 and widened the current account deficit to 4.3 percent of GDP. In the wake of a global shock from the pandemic, Colombia’s economy is expected to contract for the first time in two decades, alongside a looming global contraction, lower oil prices, and tightening financial conditions. In response to disrupted activity, the authorities have adopted a set of measures to boost liquidity and support growth domestically.