GDP in Colombia
Colombia - GDP
Growth softens slightly in Q4 but remains upbeat
According to a preliminary estimate released by the Statistical Institute (DANE) on 14 February, the economy lost some traction in the final quarter of 2019 but concluded a robust year overall nonetheless. GDP grew 3.4% year-on-year in Q4, marginally down from Q3’s upwardly revised 3.5% expansion (previously reported: +3.3% year-on-year). Taking the year as a whole, however, the economy accelerated to 3.3% from 2.5% in 2018.
Domestic demand lost some steam in the fourth quarter, constrained by weaker fixed investment and household spending growth, although remained firm overall. Fixed investment growth decelerated to 2.5% in Q4 after expanding a revised 5.9% in Q3 (previously reported: +5.1% yoy), weighed on by sliding residential investment. In addition, private consumption growth eased to 4.4% from Q3’s 4.9% expansion, amid slightly more downbeat consumer sentiment, while public expenditure growth moderated to 4.3% from a revised 4.7% in Q3 (previously reported: +3.5% yoy).
On the external front, export growth slowed to 0.3% from Q3’s revised 2.0% expansion (previously reported: +1.9% yoy), dragged on by weak global demand. Meanwhile, import growth slumped to 5.6% from a revised 11.5% in the prior quarter (previously reported: +10.0% yoy). Taken together, the external sector weighed less severely on growth in Q4 than in the previous quarter.
In quarter-on-quarter terms, economic growth ticked down to 0.5% in the fourth quarter after accelerating 0.6% in Q3.
Looking ahead, economic growth is expected to remain solid this year, powered by fixed investment growth amid lower corporate taxes and fiscal exemptions, and still-healthy private consumption. However, social unrest and political tensions, which could hurt consumer and investor confidence, and a fairly high external debt burden pose downside risks to the outlook.
Daniela Velandia and Camilo Duran, analysts at Credicorp, noted:
“The results of economic activity in 4Q19 are a sample of what could be observed in 2020. Specifically, we expect a deceleration of domestic demand this year as the cycle of private consumption would have peaked in 2019, public spending should moderate further amid the first year of regional administrations and the fiscal constraints of the central government, and investment should moderate its growth due to the fading of the effects of the tax reform (particularly those related to capital goods purchases). However, total GDP growth should maintain a similar pace than in 2019 due to the deceleration of imports, in line with a slowing domestic demand.”
Our panel projects that GDP will expand 3.2% in 2020, which is unchanged from last month’s forecast, and 3.2% again in 2021.
Colombia - GDP Data
|Economic Growth (GDP, annual variation in %)||4.7||3.0||2.1||1.4||2.5|
5 years of economic forecasts for more than 30 economic indicators.
Colombia GDP Chart
Source: Statistical Institute (DANE).
|Bond Yield||6.08||0.0 %||Dec 30|
|Exchange Rate||3,287||-0.17 %||Jan 01|
Get a sample report showing our regional, country and commodities data and analysis.
Request a Trial
Start working with the reports used by the world’s major financial institutions, multinational enterprises & government agencies now. Click on the button below to get started.
April 4, 2020
Consumer prices rose 0.57% over the previous month in March, decelerating from February’s 0.67% rise.
April 1, 2020
Business conditions in Colombia’s manufacturing sector deteriorated in March amid the ongoing Covid-19 pandemic.
March 27, 2020
Colombia’s Central Bank (BanRep) cut the benchmark interest rate by 50 basis points to 3.75% at its latest Board of Directors meeting on 27 March.
March 16, 2020
The Colombian peso dived sharply in early March amid the rapid spread of the coronavirus pandemic and the significant drop in oil prices.
March 13, 2020
Industrial production from the manufacturing sector increased 3.7% in an annual basis in the first month of 2020, following the revised 3.5% rise in December (previously reported: +3.2% year-on-year) and marking the highest reading since July 2019, according to the Statistical Institute (DANE).