Americas: Macroeconomic overview
Colombia is struggling to tame high inflation and low economic growth, both of which are concerns for upstream investment.
Colombia’s inflation rate was 8.97% in July, its highest level since October 2000. This resulted in the country’s central bank hiking its benchmark interest rate by 25 basis points in July, to 7.75% – the eleventh consecutive month of rate rises. However, the tightening monetary policy has taken its toll on Colombia’s economic growth. The country’s GDP expanded by 2.5% on an annual basis in Q1 2016, which was lower than the 3.1% growth seen in 2015 and the 4.4% it achieved in 2014.