Colombia: GDP growth slows down slightly but remains robust in Q3
December 15, 2014
In Q3 2014, GDP grew 4.2% over the same quarter of the previous year, which came in marginally below the 4.3% increase registered in Q2 and represented the slowest pace of growth since March 2013. The reading met market expectations.
Q3’s expansion reflects that an improved performance of the external sector compensated for a slowdown in domestic demand. Total consumption growth slowed to a 4.7% rise in Q3 (Q2: +5.6% year-on-year), which represented the slowest expansion since June 2013. Q3’s moderation came on the back of a slowdown in private consumption (Q2: +5.3% yoy; Q3: +4.5% yoy) and government spending (Q2: +6.5% yoy; Q3: +5.4% yoy). Conversely, fixed investment picked up from Q2’s 11.2% increase to a 12.7% rise in Q3.
Exports of goods and services rebounded to a 5.3% expansion (Q2: -9.7% yoy), while imports rose a significant 14.2% (Q2: +9.6% yoy). As a result, the external sector’s net contribution to overall growth improved from minus 4.5 percentage points in Q2 to minus 3.0 percentage points in Q3.
In seasonally-adjusted terms, the economy expanded 0.6% over the previous quarter, contrasting Q2’s 0.1% contraction.