Colombia: Industrial production rebounds in August
October 22, 2010
In August, industrial production grew 4.4% over the same month last year, which came in well above the 0.2% increase observed in July. Furthermore, the August reading marked the tenth consecutive month of positive growth in industrial production. The monthly acceleration was mainly driven by strong growth in iron and steel production as well as in chemical products output. Moreover, vehicles production expanded 42.0% in annual terms, as the automotive sector continues to benefit from a strong base effect. Last year, the sector had been adversely affected by Venezuela's decision to lower its import quota for Colombian vehicles as a consequence of the diplomatic spat between the two countries last year. As a result of the strong monthly reading, annual average growth in industrial production continued to improve, rising from 2.0% in July to 2.7% in August.
Author: Ricardo Aceves, Senior Economist