(Reuters) - Colombia's economy grew 4.3 percent in 2013, the national statistics agency said on Thursday, beating the market expectation of 4.1 percent and reflecting momentum driven by nearly a year of low interest rates.
The yearly result fell short of the 4.5 percent government target for the year but was nonetheless boosted by the strongest quarterly growth in six quarters, with expansion rising to 4.9 percent in the final three months of last year.
The latest figures did not change expectations that the central bank will maintain its benchmark interest rate at 3.25 percent for a 12th straight month when its board meets on Friday, analysts said.
"I think the Colombian economy is in a period of expansion that will consolidate in 2014. What we have seen is that private demand is staying solid," said Catalina Tobon, chief economist at finance group Old Mutual Skandia.
Camilo Perez, head of economic research at Banco de Bogota, said evidence the economy is picking up as demonstrated by expansion near 5 percent in the last two quarters may mean an eventual rise in interest rates, which the market expects around July, could come before then.
The statistics agency, DANE, said construction, agriculture and mining were among the strongest sectors in the Andean nation's economy last year. It also revised its figure for 2012 growth down to 4 percent from 4.2 percent previously.
Colombia's peso was the biggest mover among Latin American currencies on Thursday, strengthening 0.8 percent to 1,988 to the dollar and crossing below 2,000 pesos for the first time since January 24.
Foreign exposure to Colombia's economy could grow this year, after the head of public credit said the government was preparing reforms to boost sales of sovereign bonds to non-nationals.
J.P. Morgan on Wednesday raised the weighting for Colombian debt in two of its emerging market bond indexes.
Colombia has a large commodities sector, with rising oil output now measuring around 1 million barrels per day.
The country is also the world's No. 4 thermal coal exporter and largest producer of washed, or mild, arabica coffee beans.
reuters.com
The yearly result fell short of the 4.5 percent government target for the year but was nonetheless boosted by the strongest quarterly growth in six quarters, with expansion rising to 4.9 percent in the final three months of last year.
The latest figures did not change expectations that the central bank will maintain its benchmark interest rate at 3.25 percent for a 12th straight month when its board meets on Friday, analysts said.
"I think the Colombian economy is in a period of expansion that will consolidate in 2014. What we have seen is that private demand is staying solid," said Catalina Tobon, chief economist at finance group Old Mutual Skandia.
Camilo Perez, head of economic research at Banco de Bogota, said evidence the economy is picking up as demonstrated by expansion near 5 percent in the last two quarters may mean an eventual rise in interest rates, which the market expects around July, could come before then.
The statistics agency, DANE, said construction, agriculture and mining were among the strongest sectors in the Andean nation's economy last year. It also revised its figure for 2012 growth down to 4 percent from 4.2 percent previously.
Colombia's peso was the biggest mover among Latin American currencies on Thursday, strengthening 0.8 percent to 1,988 to the dollar and crossing below 2,000 pesos for the first time since January 24.
Foreign exposure to Colombia's economy could grow this year, after the head of public credit said the government was preparing reforms to boost sales of sovereign bonds to non-nationals.
J.P. Morgan on Wednesday raised the weighting for Colombian debt in two of its emerging market bond indexes.
Colombia has a large commodities sector, with rising oil output now measuring around 1 million barrels per day.
The country is also the world's No. 4 thermal coal exporter and largest producer of washed, or mild, arabica coffee beans.
reuters.com
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