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It was just a few years ago when Colombia was one of the brightest emerging markets stars, but the commodities slumped experienced over the last two years pressured Colombian equities and GXG. Last year, Colombia’s central bank had to hike interest rates to cool inflation. Two years ago, Fitch Ratings upgraded its long-term foreign issuer default rating on Colombia to BBB from BBB-.
Colombia’s economy is South America’s third-largest behind Brazil and Argentina.
“The recent quarter’s GDP growth showed a weaker performance of 1.1% on a year-over-year basis as compared to 1.6% in the last quarter. An inflation rate above 3% is expected to result in more rate cuts in 2017 to improve economic growth in Colombia,” reports Market Realist.
For more information on the developing economies, visit our emerging markets category.