Colombia Overtakes its Neighbors as the Fastest-Growing Economy in the Region: The Economist
The Economist notes that this is an exception to the regional trend, as according to the journal, Latin America would grow by less than 2% this year, the most adversarial environment since 2009. The end of the raw materials boom such as copper and gold, which drove the region’s growth for over ten years, together with a series of individual factors and government policies, made an impression.
Considering the current situation in the region, The Economist article states that Colombia is surpassing the rest of the region, becoming the country with the strongest and fastest growth rate among the largest Latin American economies. The main exports by the coffee-producing country include oil and coal, which have enjoyed steady prices during the last few years, opposite to raw materials like copper and gold, which are the foundations and strength of some countries in South America, where imports have decreased substantially.
A series of reforms must also be included in order to explain Colombia’s growth. Last year, the government ordered lower mortgage rates through an agreement with banks and public subvention. This helped support construction, which is growing by more than 10% annually, in addition to the development of foreign investment, on the rise during the last 4 years.