Colombia: GDP growth accelerates in Q3 on positive impulse from total consumption
December 21, 2015
GDP grew 3.2% over the same quarter of the previous year in Q3, which came in above the 3.0% increase registered in Q2 and marked the strongest result since Q4 2014. The reading was in line with market expectations.
Q3’s acceleration mainly reflected improvements in total consumption, which more than offset a deterioration of the external sector on rising imports. Indeed, total consumption growth rose 3.4% in Q3 (Q2: +3.0% year-on-year). Private consumption growth inched up from Q2’s 3.4% to 3.5% in Q3. In addition, growth in government spending accelerated from Q2’s 1.8% to 2.7% in Q3. However, fixed investment growth swung from a 1.8% rise in Q2 to a 0.4% contraction in Q3.
Exports of goods and services fell 0.7% in Q3 (Q2: -0.8% yoy), while imports rose 0.6% (Q2: -0.9% yoy). As a result of the rebound in imports, the external sector’s net contribution to overall growth deteriorated from plus 0.1 percentage points in Q2 to minus 0.3 percentage points in Q3.
In seasonally-adjusted terms, the economy expanded 1.2% over the previous quarter, coming in above Q2’s 0.5% increase and marking the best result in a year and a half.
Author: Eric Denis , Economist