Colombia suffers lowest third quarter GDP growth rate in seven years: DANE

Colombia’s GDP suffered an extreme slowdown in the third quarter of 2012 growing just 2.1% — a five percent drop from last year’s numbers.

According to DANE [The National Administrative Department of Statistics] the third quarter of 2012 saw the Colombian economy grow just 2.1%, the lowest third quarter growth rates in seven years according to DANE director, Jorge Bustamante.

Colombia’s GDP grew 7.5% in the third quarter of 2011 and in the first two quarters of 2012 the rate was 4.8% and 4.9% respectively. The significant third quarter decline was credited in large part due to a 12.3% drop in construction.

Despite the disappointing growth statistics, the Colombian economy and the government’s macroeconomic policies were praised recently by both the IMF [International Monetary Fund] and the World Bank.

“Colombia…has a very small deficit and a balanced debt and because of this their macroeconomic situation is very promising,” said the Director of the IMF, 

The World Bank recently approved a $150 million loan to Colombia for urban development only one month after issuing a $200 million loan in recognition of the government’s “sound fiscal management.”

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