The Colombian economy will be the fastest growing in Latin America during 2022, according to the IMF

In its latest report, released on Tuesday, the International Monetary Fund (IMF) increased Colombia's forecast of economic growth for 2022. According to the report, the Colombian economy will be the one that will lead the region throughout this year.

In January's economic projections, the IMF predicted that Colombia's Gross Domestic Product (GDP) for this year would be 4.5 per cent, while in its April report, it increased the percentage to 5.8 per cent.

Thus, according to the report, the Colombian economy will be ranked as the fastest growing economy this year in Latin America, whose GDP for 2022 the IMF estimates to be 2.5%.

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However, the agency emphasized that, given the current international situation, particularly the conflict between Russia and Ukraine, the region's economic forecasts would be “even more uncertain than usual” throughout this year.

“The shortage of supplies caused by the war will greatly amplify these pressures, particularly through increases in the price of energy, metals and food,” the IMF warned.

The international organization then warned that, in addition, “in emerging markets and developing economies, increases in food and fuel prices could significantly increase the risk of social unrest.”

According to the document, another country that will improve its economic projection this year, ranking as the second best in the region in 2022, will be Argentina, a territory whose economic forecast is expected to increase by 4%.

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Argentina is followed by Peru, with growth of 3% for 2022; followed by Mexico, which according to projections by the International Monetary Fund, this year the economy of the Aztec country will grow by 2%, a figure that represents a decline due to the fact that, according to the January report, the economic forecast of that country territory was 2.8%.

For its part, Chile would see a 1.5 per cent increase in GDP over the course of this year, while Brazil, classified as the first economy in Latin America, would be the nation with one of the lowest economic increases in 2022, with a figure of 0.8 per cent, which is equivalent to 0.5 points higher than the forecasts for January 2017 this year.

As for Colombia's economic growth over the next few years, the international monetary agency projected a figure of 3.6% for 2023, which will slow down between 2024 and 2027, falling to 3.4%.

Regarding the outlook for inflation, the International Monetary Fund forecast that inflation will be 7.7% in 2022, and 4.2% in 2023. Given the figures, the organization called on Colombia to urgently address the country's inflation, as it could have a negative impact on the country's economic growth.

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