Colombia is the best-performing Latin American economy in 2022

Colombia best-performing economy
Photo: Mauricio Acosta Rojas/Shutterstock

According to data released by Colombia’s official statistics bureau Dane, the country’s GDP grew by 12.6 percent in Q2 2022 on a year-on-year comparison. Growth during the first half of the year alone reached 10.6 percent. 

The results support what international entities have been saying since the beginning of the year: Colombia is the Latin American country that is best positioned to prosper in 2022.

Among the sectors driving the economic recovery in Colombia is culture, with annual growth of 36.5 percent due to the post-Covid resumption of concerts and other events. Retail grew by 23.3 percent, and the manufacturing industry enjoyed a 20.3-percent jump. In addition, the travel sector is also slowly recovering from the pandemic chaos.

Meanwhile, activities such as agriculture and mining remain below pre-pandemic levels.

Colombia is the best-performing annual economy among OECD members and leads the way for projections in Latin America.

For 2022, the International Monetary Fund (IMF) projects 5.8-percent GDP growth for Colombia, while the World Economic Forum (WEF) forecasts 6.3 percent.

With shifting global winds posing challenges to Latin America, persistent inflation should lead Colombia’s central bank to maintain a restrictive interest rate policy until the end of next year. This perspective also contributes to the lower forecast for Colombia this year, at 2 percent per the IMF and 3.5 percent per the WEF.