Colombia’s economy will contract this
year and the peso will weaken further, according to Barclays
The economy will shrink 1.1 percent in 2009, compared with a
prior estimate of 0.9 percent growth, Barclays economists
including Roberto Melzi and Mauro Roca wrote in a report today.
Colombia will likely see growth of 3.8 percent in 2010, they
Barclays estimates the peso will reach 2,850 per dollar in
the third quarter. The currency has declined 11.9 percent since
the start of the year. It gained 1 percent today to 2,543.
“Improvement in the macroeconomic scenario” will allow the
peso to close this year at 2,700, according to the report. (Bloomberg)