Colombia’s economy grew 4.3% in 2013: Govt

Posted on Mar 20 2014 - 8:47pm by Rico
economic

Colombia’s national government said Thursday that its economy had grown 4.3% in 2013.

Colombia’s National Department of Statistics (DANE) reported that Colombia’s gross domestic product (GDP) grew by 4.9% during the final fiscal quarter of 2013, contributing to total economic growth 4.3% higher than 2012.

Colombia’s GDP growth since 2000

MORE: Colombia GDP statistics

According to DANE, the most pronounced increase seen during 2013 was in the construction sector.  The sector saw a full 9.8% increase from 2012. This was partially attributed to an expansion in social interest housing projects and also the proliferation of residential buildings, the DANE report said.

The sector with the next largest growths were seen in the service industry and agriculture, 5.3% and 5.2% respectively.  Agriculture reportedly received a boost from an increase in the exportation of coffee.  Despite an increase in production, and a recent increase in price, Colombian coffee growers have seen very little increase in profits.

MORE: Why better prices doesn’t mean better doesn’t mean better conditions for Colombia’s coffee farmers

The extraction of petroleum and minerals also gave an expected boost to the Colombian GDP in 2013, increasing 4.9% from the previous year.

Although the petroleum and mining sector did not witness the same growth as construction this sector makes up a sizable chunk of the Colombian GDP.  According to figures from the Ministry of Commerce, Industry and Tourism, petroleum exports made up over 46% of Colombia’s total exports from January to July 2013.

Current Colombian proven oil reserves are set at about 2.3 billion barrels, which could see Colombia’s oil wells dry up in less than seven years.  As a result, it may be difficult for Colombia to maintain 2013′s level of growth in the long term without introduction of new economic sectors or increases in the production output of other sectors.

The only major economic category to show a decrease when compared with 2012 was the manufacturing sector. Manufacturing industries saw a 1.2% drop in GDP from 2012.

Colombia’s 2013 economic growth is only slightly shy of last year’s International Monetary Fund (IMF) prediction of 4.5%, but higher than the end-of-year estimation of the regional economic institute CELAC.

MORE: Colombia’s Economy Will Grow 4% This Year: ECLAC

Sources

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