Consumption in Colombia
Colombia - Consumption
Growth accelerates in the second quarter
According to the latest GDP data released by the National Statistical Institute (DANE) on 22 August, the economy accelerated on the back of a rebound in fixed investment and a pick up in private consumption. In annual terms, GDP expanded 2.8% in the second quarter, up from 2.2% in the first quarter.
Looking at a breakdown of the components, domestic demand accelerated to 2.5% in the second quarter, up from 1.5% in the first quarter. Private consumption rose 2.7% in Q2 amid a jump in consumer confidence to the highest level in a year, which followed a 2.0% expansion in Q1. Meanwhile, fixed investment rebounded, growing 1.7% in Q2 following a 0.7% contraction in Q1. A recovery in the output of machinery and equipment, and cultivated biological resources drove the upturn in fixed investment. Government spending, on the other hand, expanded at a slightly slower pace of 5.6%, down from 6.0% in the first quarter.
While exports rebounded in the second quarter, the external sector dragged on growth in Q2 as imports accelerated more sharply. Exports rose 3.0% in Q2 after a 0.7% drop in the previous quarter. Meanwhile, imports climbed 5.5%, contrasting a 1.4% contraction in Q1. Thus, the overall contribution of the external sector to growth was negative in the second quarter, following a positive reading in the first quarter.
In seasonally-adjusted, quarter-on-quarter terms, however, economic growth lost pace, declining from 0.9% in Q2 to 0.6% in Q1, owing to a cutback in government consumption compared to the previous quarter which was partly offset by a strong recovery in fixed investment. While the recovery in economic activity is seen picking up in the coming quarters, thanks to improving domestic demand and higher projected global oil prices, a high fiscal deficit continues to pose risks to long-term fiscal sustainability.
Panelists participating in the LatinFocus Consensus Forecast project that GDP will expand 2.6% in 2018, which is unchanged from last month’s forecast. For 2019, panelists expect GDP growth to accelerate to 3.1%.
Colombia - Consumption Data
|Consumption (annual variation in %)||4.8||4.6||3.4||1.4||2.2|
5 years of economic forecasts for more than 30 economic indicators.
|Bond Yield||6.92||0.0 %||Sep 20|
|Exchange Rate||3,006||-0.17 %||Sep 20|
|Stock Market||12,207||-0.66 %||Sep 20|
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September 7, 2018
According to the National Department of Administrative Statistics (DANE), consumer prices rose 0.12% over the previous month in August, contrasting a 0.13% month-on-month drop in July.
September 7, 2018
On 6 September, the Colombian peso ended the day at 3,086 per USD, weakening 6.4% over the same day in August.
September 3, 2018
Colombia’s manufacturing lost some pace in August, with the seasonally-adjusted Davivienda manufacturing Purchasing Managers Index (PMI) edging down to 53.3 from July’s 30-month high of 53.5.
August 22, 2018
According to the latest GDP data released by the National Statistical Institute (DANE) on 22 August, the economy accelerated on the back of a rebound in fixed investment and a pick up in private consumption.
August 16, 2018
The Fedesarrollo consumer confidence index came down to 9.8 points in July from June’s over-three-year high of 15.5 points, moving closer to the zero-point threshold separating optimism from pessimism among consumers.