the Country Assistance Strategy (CAS) during 2008-2011. During the CAS period Colombia's economy rebounded from near stagnation in 2002 to achieve a growth rate of around 6.6 percent in 2007.This turnaround was due partly to a favorable external environment but improved internal security and sound macroeconomic management also played a critical role. High growth rates have reduced poverty and raised social indicators while reduced violence and enhanced government effectiveness and rule of law have resulted in increased consumer and investor confidence. This combination of economic recovery increased state presence and successful security measures against illegal groups have worked together in a virtuous cycle to significantly improve the quality of life of millions of Colombians. The economy remained strong in 2007 with gross domestic product (GDP) growth estimated at 6.6 percent for the year. Significantly improved factors supporting both domestic demand (internal peace healthy investment and credit levels) and external demand (rising exports and foreign direct investment) should result in sustained economic growth in the 5 percent range through 2011. The near stagnation of the economy during the early 2000s has given way to sustained economic growth and a strengthening of consumer and investor confidence. The turnaround was influenced by an improved global economic environment in which demand for Colombia's primary exports has risen along with prices while the cost of international borrowing in has fallen. Sound macroeconomic management has played a major part in the recovery and improvements in internal security also helped as well.