By Javier Mozzo Pena
BOGOTA, June 25 (Reuters) - Colombia's economy shrank an unexpectedly small 0.6 percent in the first quarter of the year compared with the first three months of 2008, the government said on Thursday, confirming that the country is in recession.
Analysts polled by Reuters on Tuesday predicted Colombian gross domestic product contracted 1.3 percent in the first quarter.
The government's statistics department revised its economic data for the fourth quarter of 2008, saying the economy shrank 1 percent during the period versus the last three months of 2007. It had previously said the economy contracted 0.7 percent in the fourth quarter of last year.
Economists say that two consecutive quarters of shrinking GDP constitute a recession.
'When you compare what is happening in other countries -- where you saw a greater first quarter GDP contraction in places like Chile, Brazil and Mexico -- Colombia is doing relatively well,' said Camilo Perez, chief economist at Banco de Bogota.
'We predict another negative number for the second quarter, to be followed by a recovery in the second half of the year,' he added.
Export revenues, manufacturing activity and household demand have been hit in Colombia by fallout from the world slowdown. The government says it expects the local economy to start to expand again later this year and that growth for full-year 2009 will be between 0.5 percent and 1.5 percent.
'The (first quarter) result is satisfactory compared with expectations and compared with other countries around the world,' government Planning Director Esteban Piedrahita told reporters. 'We feel calm, because we are going to hit the growth target.'
Until late 2008, Colombia's economy had expanded strongly under President Alvaro Uribe, who is popular for his U.S.-backed crackdown on leftist rebels.
Increasing security, especially in urban areas, attracted waves of foreign investment after Uribe was first elected in 2002. But investment in Colombia has stagnated this year under the weight of the global financial crisis.
(Reporting by Javier Mozzo; Writing by Hugh Bronstein; Editing by James Dalgleish) Keywords: COLOMBIA GDP/ (javier.mozzo@thomsonreuters.com; Tel: +571-634-4139; Reuters Messaging: javier.mozzo.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
BOGOTA, June 25 (Reuters) - Colombia's economy shrank an unexpectedly small 0.6 percent in the first quarter of the year compared with the first three months of 2008, the government said on Thursday, confirming that the country is in recession.
Analysts polled by Reuters on Tuesday predicted Colombian gross domestic product contracted 1.3 percent in the first quarter.
The government's statistics department revised its economic data for the fourth quarter of 2008, saying the economy shrank 1 percent during the period versus the last three months of 2007. It had previously said the economy contracted 0.7 percent in the fourth quarter of last year.
Economists say that two consecutive quarters of shrinking GDP constitute a recession.
'When you compare what is happening in other countries -- where you saw a greater first quarter GDP contraction in places like Chile, Brazil and Mexico -- Colombia is doing relatively well,' said Camilo Perez, chief economist at Banco de Bogota.
'We predict another negative number for the second quarter, to be followed by a recovery in the second half of the year,' he added.
Export revenues, manufacturing activity and household demand have been hit in Colombia by fallout from the world slowdown. The government says it expects the local economy to start to expand again later this year and that growth for full-year 2009 will be between 0.5 percent and 1.5 percent.
'The (first quarter) result is satisfactory compared with expectations and compared with other countries around the world,' government Planning Director Esteban Piedrahita told reporters. 'We feel calm, because we are going to hit the growth target.'
Until late 2008, Colombia's economy had expanded strongly under President Alvaro Uribe, who is popular for his U.S.-backed crackdown on leftist rebels.
Increasing security, especially in urban areas, attracted waves of foreign investment after Uribe was first elected in 2002. But investment in Colombia has stagnated this year under the weight of the global financial crisis.
(Reporting by Javier Mozzo; Writing by Hugh Bronstein; Editing by James Dalgleish) Keywords: COLOMBIA GDP/ (javier.mozzo@thomsonreuters.com; Tel: +571-634-4139; Reuters Messaging: javier.mozzo.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.