Analysts told Reuters the Andean country's gross domestic product (GDP) would expand by 7.9%, led by soaring domestic demand. The government had predicted growth of 8%. Colombia's economy in 2021 grew 11%, the government said.
The economy expanded 2.9% in the fourth quarter compared with the same period in 2021, DANE said, lower than analyst expectations for 4% growth. Colombia's GDP was equivalent last year to some $305.9 billion. "We have already started to return to the normalization of the growth path that we had before the pandemic," said Piedad Urdinola, director of DANE. Growth between October and December was driven by the artistic and entertainment sector, which expanded 37.9%; commerce, transport, housing and food services, which grew 10.7%; and manufacturing, which registered growth of 9.8%. The mining sector registered 0.6% growth, while the real estate sector expanded by 2.0%. Colombia's agriculture sector contracted by 1.9%, the government said.
The economy grew by 0.7% compared with the third quarter of 2022, DANE added.
DANE revised its GDP growth for October and November
down to 4.0% and 2.3% respectively. In December the economy grew
by 1.3%.
A tax reform by the government of leftist President Gustavo Petro entered into effect in January. It looks to raise 20 trillion pesos ($4.18 billion) annually for the next four years, to fund social programs and tackle inequality. The technical team of the country's central bank forecasts GDP growth for this year at 0.2%. The bank's board has raised the benchmark interest rate to 12.75%, its highest level since November 1999, in continued efforts to respond to rising inflation. Twelve-month consumer price growth hit 13.12% at the end of 2022. ($1 = 4,783.24 Colombian pesos) (Reporting by Nelson Bocanegra and Carlos Vargas; Writing by Oliver Griffin; Editing by Jonathan Oatis and Chris Reese)
