Flag description: three horizontal bands of yellow (top,
double-width), blue, and red; similar to the flag of Ecuador, which
is longer and bears the Ecuadorian coat of arms superimposed in the
center
Economy
Economy—overview: Colombia ended 1998 in recession with 0.2% GDP growth due to a combination of low world oil prices, reduced export demand, guerrilla violence, and diminished investment flows. The Central Bank resorted to interest rate hikes and tight monetary policy to defend the peso against pressure from Colombia's worsening trade and fiscal deficits. President PASTRANA'S well-respected financial team is working to deal with the myriad economic problems the country faces, including the highest unemployment level in decades and a fiscal deficit of close to 5% of GDP in 1998. The government implemented austerity measures, declared emergency measures to guard against a potential banking crisis resulting from the country's economic slowdown, and is seeking international assistance to fund a peace plan with the guerrillas. Guerrilla violence and low world oil prices will likely continue to undermine the economy in 1999.
GDP: purchasing power parity—$254.7 billion (1998 est.)
GDP—real growth rate: 0.2% (1998)
GDP—per capita: purchasing power parity?$6,600 (1998 est.)
GDP—composition by sector: agriculture: 19% industry: 26% services: 55% (1996)
Population below poverty line: 17.7% (1992 est.)
Household income or consumption by percentage share:
lowest 10%: 1%
highest 10%: 46.9% (1995)
Inflation rate (consumer prices): 16.7% (1998 est.)