Rapid economic growth returned to Colombia in 2004, accompanied by low inflation and high investment. At 27 per cent of gross domestic product the investment rate is among Latin America’s highest. Foreign direct investment has also soared.
The average annual growth rate since 2004 has been 4.7 per cent. Growth slowed during the global financial crisis of 2008-09 but there was no recession. This is in sharp contrast to the Asian and Russian crises in the late 1990s when Colombia experienced its worst recession of the 20th century. The improvement was in part thanks to the country’s ability to adopt a counter-cyclical monetary policy, a big advance over the policies adopted in previous crises.
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