Colombia is recovering… by baby steps. The Andean nation’s gross domestic product grew 4 per cent last year, beating the country’s central bank forecast of 3.3 to 3.9 per cent – but still much lower than the 6.6 per cent of 2011.

“Colombia’s economy grew by 4 per cent, which positions us as one of the world’s most dynamic economies, because the world is in a big crisis,” the country’s finance minister, Mauricio Cárdenas, said after the figures were released on Thursday.

The economy expanded 3.1 per cent in the fourth quarter, up from a sluggish 2.1 per cent in the previous quarter, spurred by a revamp in construction and mining.

However, there is still some way to go. For Alejandro Grisanti and Alejandro Arreaza of Barclays Capital:

Even if there is not a clear signal of a recovery yet, growth seems at least to be stabilizing, thereby reducing downside risk. Nonetheless, GDP growth is still distance away from the 4.8% that the government expects to reach, or the 4.5% of its long-term trend.

Even if there is not a clear signal of a recovery yet, growth seems at least to be stabilizing, thereby reducing downside risk. Nonetheless, GDP growth is still distance away from the 4.8% that the government expects to reach, or the 4.5% of its long-term trend.

Source: FT.com