🤑 It doesn’t get more affordable. Grab this 60% OFF Black Friday offer before it disappears…CLAIM SALE

Colombia economy contracts 20% in April under coronavirus impact

Published 06/18/2020, 12:35 PM
Updated 06/18/2020, 01:15 PM

By Nelson Bocanegra and Oliver Griffin

BOGOTA (Reuters) - Colombia's economy contracted 20.06% in April versus the same month last year - its largest fall on record - as the country suffered the fallout of a national coronavirus lockdown, the government's statistics agency said on Thursday.

President Ivan Duque declared an ongoing national quarantine to curb the spread of the disease in late March. Though some restrictions have recently been lifted, the lockdown is set to last until July 1.

The collapse of Colombia's gross domestic product (GDP) in the fourth month of the year was much higher than the 4.9% drop seen in March, statistics agency DANE said.

From January to April this year Latin America's fourth-largest economy contracted 4.3%, compared with the same period in 2019.

The tertiary sector - made up of retail, public services, restaurants, bars, accommodation and transport - shrank 9.2%, the agency said. Tertiary economic activities overall account for some 67% of the economy.

Extractive industries, including oil and mining, collapsed 13.75%, while manufacturing and construction fell by 50.12%.

The contraction was due to the "effects of the measures of confinement and limitation of economic activity," said DANE director Juan Daniel Oviedo in a virtual press conference.

The Andean country's economy grew 1.1% in the first quarter of the year, after robust expansion in January and February was offset by the start of pandemic measures in March.

Thousands of businesses have shuttered, unemployment has spiked and the government - which has abandoned its fiscal deficit limits for 2020 and 2021 - expects the economy to contract by 5.5% this year.

In April, unemployment hit a historic 23.5% in urban areas, equivalent to more than 4 million people out of work, as the government promised further welfare measures to help those most affected.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.