Colombia Retail Sales (ann. var. %)

Economic growth decelerated further in Q4 in year-on-year terms. The annual slowdown was broad-based and due to a base effect. In sequential terms, growth sped up slightly. Turning to Q1, both annual and sequential growth rates are likely weakening amid rising inflation and interest rates. Compared to Q4, consumer sentiment became more pessimistic in January and the manufacturing PMI fell deeper into contractionary territory in January–February. In other news, over the last month the president submitted to Congress a four-year development plan and bills to reform the health system and raise public spending this year. While higher government spending should boost growth, the radical nature of some of the reforms also threatens to undermine investment and the stability of the governing coalition—a cabinet reshuffle took place in early March.