According to the Bank of the Republic, the gradual reopening of the operation of several economic sectors that have been completed since September, along with stabilization of the spread of the pandemic, will generate a slight push for reactivation for the remainder of the year.
That is why in the recent October monetary policy report, the Issuer shows greater optimism about what it saw in July and improved several macroeconomic projections. In principle, the study raised the economic decline forecast from -8.5% to -7.6% for this year, arguing better supply and demand dynamics over the past quarter.
“The gradual opening of the economy would continue and the supply of the sectors most affected by the pandemic would slowly recover as the flexibility of the restrictions continues to move forward,” said Hernando Vargas, technical manager of the Central Bank.
Vargas added that, on the spending side, improved household confidence, increased demand for various goods and services, higher expected levels of external demand, and low real interest rates would contribute to the recovery of the product level.
Another recovery that the Issuer focuses on is the labor market that foresees a short improvement and the rate would close 2020 by an average of between 15.9% and 16.7%, lower than the previous forecast (between 16.5% and 19%).
