Colombia: GDP accelerates in Q2
September 22, 2011
In the second quarter, GDP added 5.2% over the same quarter last year, which represented an improvement over the 4.7% expansion observed in the first quarter (previously reported: +5.1% year-on-year) and was broadly in line with market expectations. The second quarter acceleration was primarily driven by domestic demand, in particular by a strong increase in stocks as well as strengthening gross fixed capital formation (Q1: +11.7% yoy; Q2: +14.8% yoy), which pushed investment to a 21.1% expansion in Q2 (Q1: +17.0% yoy). Private consumption jumped 6.4% year-on-year (Q1: +6.0% yoy), while government spending increased 1.8% (Q1: +0.9% yoy). Meanwhile, the external sector deteriorated over the previous quarter, as the 7.6% rise in exports (Q1: +10.9% yoy) was more than offset by a strong jump in imports, which accelerated from a 25.6% increase in Q1 to a 28.4% expansion in Q2. As a result, the overall contribution from the external sector decreased from minus 4.1 percentage points in the first quarter to minus 5.5 percentage points in the second quarter. At the sector level, services expanded 5.4% in the second quarter, overshooting the 4.2% increase in the first quarter. Industry grew 3.3% (Q1: +3.5% yoy), while agriculture increased 2.2% (Q1: +6.9% yoy). A quarter-on-quarter comparison corroborates the strong growth seen in the annual data, as the economy added 2.1% over the previous quarter (Q1: +0.7% qoq).