During the first quarter of 2021, the year-on-year rate of growth of Colombian GDP increased from the previous quarter, registering a rate of 2.05% after three quarters of negative growth. With respect to the labor market, the unemployment rate decreased with respect to the previous quarter, down to a rate of 14.43%, while the year-on-year variation rate of employment generation increased up to a rate of -3.89%. With respect to the exchange rate, the Colombian peso depreciated 0.17% against the US dollar with respect to 4Q20, up to an average nominal exchange rate of 3,640 Colombian pesos per dollar. Finally, the year-on-year CPI growth rate stood at 1.56%, after recording a decrease compared to the previous quarter.

 


Macroeconomic outlook report: Colombia 1Q21

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Macroeconomic overview

  • The Colombian economy recorded a significant increase of 5.49 p.p. in its year-on-year GDP variation rate, up to a rate of 2.05%. Although the economic recovery was slowed by a new wave in January, economic activity increased more than expected. Domestic demand registered an increase of 5.57 p.p. compared to the previous quarter, standing at a year-on-year variation of 1.18%.
  • As for the labor market, the unemployment rate decreased during the first quarter of 2021 and stood at a rate of 14.43%, which represented a decrease of 0.52 p.p. with respect to the rate recorded in the previous quarter. On the other hand, the year-on-year variation rate of employment generation in Colombia increased by 2.61 p.p. during 1Q21, reaching a rate of -3.89%.
  • The Colombian peso depreciated 0.17% against the US dollar during 1Q21 compared to the previous quarter. Thus, the average nominal exchange rate for the first quarter of the year stood at 3,640 Colombian pesos per dollar.
  • The year-on-year CPI growth rate stood at 1.56%, after recording a decrease of 0.06 percentage points compared to the previous quarter.

For more information, click here to access the executive document in pdf (only avalaible in Spanish).