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Despite the fact that several analysts had estimated that Colombia would enter a recession, An announcement of the magnitude that Fedesarrollo makes today had not been made.
“This is the first economic recession in 20 years. In fact, before the last recession we had had, which was in 1999 ”, affirmed the director of Fedesarrollo, Luis Fernando Mejía, quoted by Blu Radio.
This media adds that although the Colombian economy has had difficult times, it has only experienced three recessions in the last 100 years: the one of the 30s, in the century passed by the Great Depression; the mortgage crisis of the late 1990s; and the current one due to the pandemic.
Analysts estimate that this will be a short but deep recession and in 2021 they will begin to see positive numbers, reported Blu.
Colombia enters economic recession
The economic growth of the country has behaved downwards in most months of this 2020. The most recent data was released by the Dane a few days ago, when it reported that the economy decreased 9% in the third quarter.
During the second quarter of the year, the GDP registered its worst fall in history and registered a decrease of 15.7%, according to the Dane.
This means that the country registered two consecutive quarters of decline, something that translates into an economic recession.
What is an economic recession and why did it happen in Colombia?
According to BBC Mundo, a country officially enters an economic recession when it registers a drop in GDP for two consecutive quarters.
That same medium details that when normal times are recorded, a country grows when They increase the production of goods and services and people have enough money to consume, something that does not happen at this time in Colombia.
In addition, there is talk of a technical recession, when negative behavior can be traced in the short term, something that is being done in the case of the local economy.
Likewise, the fact that Colombia enters a recession means that some people will lose their jobs and their possibilities, for example, of achieving wage increases are also limited.
And those who have just graduated will have difficulties entering the job market, highlights the BBC.
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