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Macroeconomic outlook report: Colombia

Fourth quarter of 2018

During the fourth quarter of 2018, the year-over-year growth rate of Colombian GDP stood at 2.93%, remaining constant with respect to the previous quarter. The acceleration of domestic demand compensated for the worse performance of the external sector. In the labor market, the unemployment rate increased by 0.59 p.p. from the previous quarter to 10.12%, while the year-over-year growth rate of employment generation slowed to a rate of -0.13%. With respect to the exchange rate, the Colombian peso stood at 3,231 Colombian pesos per dollar, after a depreciation of 9.20%. Finally, inflation reached 3.26%, 0.11 p.p. higher than in the previous quarter.

Macroeconomic overview

  • The Colombian economy maintained its year-on-year GDP growth rate at 2.93%. Exports accelerated their year-on-year growth rate to 3.07%. However, imports accelerated further and grew by 15.64%. Domestic demand accelerated to 4.91% after the acceleration of gross fixed capital formation, which compensated for the worse performance of the external sector.
  • In the labor market, the unemployment rate rose in the fourth quarter of 2018 to 10.12%, up 0.59 p.p. from the previous quarter. In addition, the year-over-year growth rate of employment generation in Colombia slowed by 1.21 p.p. during 4Q18, to fall at a rate of -0.13% in this quarter.
  • The Colombian peso depreciated against the dollar by 9.20% with respect to the average value recorded in the third quarter of 2018. The average nominal exchange rate in the fourth quarter was 3,231 Colombian pesos per dollar.
  • The year-on-year CPI growth rate reached 3.26%, an increase of 0.11 p.p. from the previous quarter.

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

© GMS Management Solutions, S.L., 2019. All rights reserved. The information contained on this publication is of a general nature and does not constitute a professional opinion or an advisory service. The data used in this publication come from public sources. GMS Management Solutions, SL assumes no liability for the veracity or accuracy of such data.