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Colombian central banker highlights 3 risks for GDP growth

Colombia's central bank, Banco de la República, predicts a moderate recovery for the local economy in 2018, although certain risks could pressure that growth outlook, Reuters reported.

Speaking at an economic conference, central bank board member Juan Pablo Zarate said the bank expects Colombia's GDP to expand 2.7% this year, adding that the economy is currently dealing with "two sick sectors" in mining and construction.

He said the first risk for growth is external financing and the "disordered adjustment" of interest rates in the U.S. The second risk relates to financing, with the level of indebtedness rising for many Colombians.

"We will see how the development of portfolios and the aversion to risk goes," the central bank official said, adding that "private uncertainty is the third risk to investment."

Zarate said he believes political uncertainty will subside once Colombia's presidential election is decided, which is set for a runoff on June 17.