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Sunday, September 19, 2021

Colombia’s Economy Contracted 10.6 percent in August

The Colombian government said on Tuesday morning that the country’s economy contracted 10.6 percent in August compared to the same month in the year 2019, as strict neighborhood COVID-19 lockdown in capital Bogota slowed economic recovery.

The Colombian government said on Tuesday morning that the country’s economy contracted 10.6 percent in August compared to the same month in the year 2019, as strict neighborhood COVID-19 lockdown in capital Bogota slowed economic recovery.

Colombia’s DANE national statistics agency said in a statement that the year-on-year fail in August was higher than the 9.7 percent contraction reported in July.

While almost every single economic activity in the country was down in August, especially construction, manufacturing, retail and agriculture, the Colombian agency attributed much of the fall to several neighborhood quarantines in the capital city.

The government of President Ivan Duque predicts Colombia’s gross domestic product will contract 5.5 percent by the end of this year.

The central bank is less optimistic, predicting a shrinkage between 6 percent and 10 percent, which would be the worst economic contracting in a decade. 

The bank’s board has cut 250 basis points from the benchmark interest rate since March, taking it to a historic low of 1.75 percent.

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