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, Christine Lagarde, who also pointed out that Colombia’s economy is doing better than the global economy at the moment.

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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