Colombia is gearing up to inject US$38 billion into its economy as part of accelerating economic growth derailed by the COVID-19 pandemic.
The money accounts for more than 12% of the country’s GDP, with analysts expecting it to add two percentage points to the country’s output this year alone.
Colombia’s economy is estimated to grow about 4.5% this year after contracting by around 7.2% last year, according to the country’s central bank.
For now, the economy has been boosted by the rising oil prices and increased foreign investment. As crude is its biggest export, Colombia may grow faster than economists are anticipating, according to some analysts.
Colombia grew faster than estimated at the end of last year, largely due to the sudden rebound in consumer spending, according to a Bloomberg survey.
“The economy expanded 6% in the last three months of the year compared to the previous quarter, beating the median forecast of 5.7% growth from analysts surveyed by Bloomberg.”
If approved by the government, the stimulus program will boost ICT infrastructure like never before, expanding internet coverage to every corner of rural Colombia.
The Andean country is hoping to invest around US$620 million in widening internet coverage.
Also, part of the plan is launching a national data infrastructure program and offering a credit line for small and mid-sized entrepreneurs.