After a year of traversing the treacherous roads that emerged from the financial downturn, Colombia’s economy and its related exchange traded fund (ETF) may finally be on track to experience a smoother ride.
“Expansive monetary policy” is spurring Colombia’s economic growth and the Central Bank has decided to keep its benchmark interest rate unchanged at 3.5% as a result, writes Helen Murphy for Bloomberg. Colombia’s quarterly GDP levels are recuperating, demand is “on the mend” and the financial system is “stable.” [Colombia Out of Its Rut?]
The decline in exports was in part because of the international crisis, diminished coffee production and the drop in demand from Venezuela. The country is boycotting Colombian goods because of an agreement that allows greater U.S. military presence in Colombia. However, Central Bank Chief Jose Dario Uribe says Chile, Peru and Central America are helping to replace the void in export sales.
Uribe expects that the economy will “probably” grow by 2% to 3% for 2010. Finance Minister Oscar Ivan Zuluaga projects an economic expansion of 2.5% this year. Inflation will likely increase in the first half of the year, says Uribe, but come drop down in August. The Central Bank estimates that inflation will be between its target range of 2% to 4% this year. [Opportunities in Latin America.]