Colombia lowered its expected economic growth rate for 2016 on Tuesday, a day after the country’s statistics agency announced GDP growth had dropped to a level unseen since the 2009 economic crisis.
Until Tuesday, the Colombian Finance Ministry projected a 3% growth this year.
However, persistently low oil prices have hit the South American country’s economy hard, forcing it to lower its projection to 2.5%.
Finance Minister Mauricio Cardenas announced the government decision in Bogota.
“This growth figure is realistic, reflects the current economic conditions that have been adverse due to what is happening around is,” Cardenas said.
Apart from the drop in oil revenue, Colombia’s largest export product, the minister said he was forced to lower the projected growth rate due to a “major drop in economic activity in Venezuela, the strong drop of economic activity in Ecuador and lower economic growth in the United States.”
The minister praised his country’s manufacturing industry, which showed a 7.1% growth in the second quarter.