"1.5% growth in Colombia raises hope, but economic challenges persist."

The latest economic data reveals that the Colombian economy has grown by 1.5% in the first half of 2024, a progress that surprises many analysts given the challenging context in which it is developing. This growth is largely supported by a rebound in the agricultural sector, which has shown an impressive increase of 10.2% in the second quarter, thanks to favorable international prices for products like coffee. This trend, although encouraging, has not been enough to dismiss the need for a reactivation plan, which the government is scheduled to present between mid and late September. In the second quarter, the country's Gross Domestic Product (GDP) grew by 2.8% compared to the same period last year. This increase is a partial relief after a first quarter that barely achieved 0.7%. Despite these results, analysts prefer to speak of a normalization of the economy rather than an effective recovery, indicating that the country is still in a healing process following the injuries suffered during the pandemic. The director of the National Administrative Department of Statistics (DANE), Piedad Urdinola, highlighted the crucial role of the agricultural sector in this growth. This sector has not only contributed a robust 2.4% to the total GDP but has also shown remarkable dynamism in livestock, despite facing challenges such as issues in the dairy sector. However, the expansion of artistic activities, which has also grown by 11.1%, has raised concerns due to its connection with online betting and gaming, a phenomenon that has yet to be adequately addressed by the authorities. The government, in turn, has played an important role in this context, with a 2.0% increase in its spending, which has served as a driver for economic growth. State contracts and executive consumption have been factors influencing GDP, although concerns remain about the sustainability of these measures given the difficulties the country faces in its public finances. Despite these positive signs, investment remains an area of concern. Experts emphasize that a lack of investment could cast a dark shadow over the future growth of the Colombian economy. With long-term investment considered the seed for future growth, it is alarming to observe the decline in fundamental sectors such as mining, which suffered a contraction of 3.3%, and industry, which decreased by 1.6%. Trade, although it showed a slight improvement, grew by only 0.2%. Economic growth projections from various financial entities prior to the results of this quarter varied considerably, from an optimistic 3% from Banco de Bogotá to a more conservative 1.9% from Fedesarrollo. However, the results presented exceeded these expectations, sparking renewed interest and hope in the government's ability to implement an effective reactivation plan. Thus, the focus of the government and the private sector will be crucial in the coming months. The capacity of both sectors to collaborate and address weaknesses in economic statistics will be fundamental to reversing the negative trends that still affect several areas of the economy. As the presentation of the reactivation plan approaches, tension and expectations rise. People are looking for concrete measures that not only promote growth but also address the structural problems that have affected the economy for years. The key will be the effective implementation of policies that align public and private interests, thereby fostering a more robust investment climate. In conclusion, although the 1.5% growth in the first half of 2024 is a relief amid a complicated landscape, challenges remain significant. With an eye on the future, Colombians hope that the government will not only maintain this momentum but also build a solid foundation for sustainable growth in the coming years. Colombia's economic history may be at a turning point, but the path to real recovery depends on bold and effective decisions yet to come.