BOGOTÁ- According to an assessment from the International Monetary Fund (IMF), the COVID-19 pandemic led to Colombia’s largest recession on record. However, the economy bounced back strongly in 2021.
According to IMF, the banking system has so far weathered the shock well, with the help of a strong policy and support response and strong initial position. Colombia is exposed to elevated external financing risks and the further prolongation of the pandemic. Large and complex financial conglomerates with increasing cross-border exposures dominate the financial system.
According to IMF, the consumer-credit portfolio deserves attention, as it has been growing fast and had high impairment rate during the pandemic.