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- Coffee prices fell by more than half.
- High unemployment and decreased national income.
- Agricultural sector hit hardest.
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- Promotion of import substitution industrialization (ISI).
- Strengthening domestic industries to reduce dependence on foreign markets. -nCreation of state-led development strategies.
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- Global economic collapse triggered by the 1929 U.S. stock market crash.
- Sharp drop in international demand for Colombian exports (mainly coffee).
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Cause:
- Global oil price shocks in 1973 and 1979.
- Rising import costs and inflation worldwide. Impact:
- Higher inflation in Colombia.
- Increased fiscal pressure and balance-of-payments problems. Government Response:
- Exchange-rate adjustments.
- Emphasis on diversifying exports beyond coffee.
- Slow shift toward more flexible economic policies. -
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- Excessive foreign borrowing during the 1970s.
- Rising global interest rates.
- Mexico’s default triggered regional panic.
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- Rescheduling of foreign debt.
- Gradual economic liberalization.
- Promotion of non-traditional exports.
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- Restricted access to foreign credit. -Peso devaluation and inflation spikes.
- Decline in investment and slow GDP growth.
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Cause:
- Global emerging-market crises (Asia and Russia).
- Excessive internal borrowing and high interest rates.
- Collapse of the Colombian real estate and financial sectors. Impact:
- GDP contracted by around −4.5% in 1999.
- Unemployment rose to 20%.
- Financial institutions failed, housing market crashed. -
Government Response:
- Creation of FOGAFIN and FRECH to stabilize banks and mortgages.
- Tax reforms to increase revenue.
- Negotiation of credit lines with the IMF.
- Reforms to make the financial sector more resilient. -
Cause:
- Worldwide financial collapse due to U.S. subprime mortgage crisis.
- Drop in global demand and investment. Impact:
- Slower GDP growth (Colombia avoided recession but weakened significantly).
- Reduced exports, especially oil, coal, and manufacturing.
- Rising unemployment. -
Government Response:
- Countercyclical spending: investment in infrastructure.
- Monetary policy expansion through lower interest rates.
- Support for vulnerable industries (e.g., manufacturing and coffee sector). -
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- Nationwide lockdowns.
- Global trade interruptions.
- Collapse in oil prices.
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- GDP contracted by −6.8% in 2020, the worst in history.
- Unemployment surged above 20%.
- Business closures, inequality increased.
- Sharp rise in poverty levels.
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- Emergency cash transfers: Ingreso Solidario, expanded social programs.
- Payroll support programs (PAEF).
- Liquidity measures from Banco de la República.
- Gradual reopening and economic reactivation plans.
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- Post-pandemic supply chain disruptions.
- High global fuel and food prices due to the war in Ukraine.
- Peso depreciation.
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- Banco de la República raised interest rates to combat inflation.
- Price-stabilization measures for food.
- Subsidies to mitigate energy and transport cost increases.
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- Inflation peaked at 13.25%, the highest in 23 years.
- Reduction in household purchasing power.
- High interest rates cooled growth.