Colombia’s economy grew 2% in the last quarter of 2009, pulling the country out of the recession that followed the global economic crisis, independent economic institute Fedesarollo announced on Tuesday.
According to a study conducted by the institute, the economic growth of the last quarter caused the national GDP to show a 0 to 0.2% growth over the whole of 2009, when expectations were that the economy would shrink.
Fedesarollo says that the growth follows an increase in domestic consumption in the last quarter and the maintaining of foreign direct investment in the country.
The study shows that consumer confidence in Colombia recovered well after the recession, reaching levels comparable to those before September 2008, when the United States entered a financial crisis and several large banks went bankrupt.
Despite Fedesarollo’s positive indications for 2009’s last quarter, it warns the government to make sure the economic rebound is sustained in 2010 and says that a planned decrease in public spending in this year’s government budget could curb further economic growth.