Skip to main content

Macroeconomic outlook report: Colombia

Third quarter of 2018

During the third quarter of 2018, the year-over-year growth rate of the Colombian GDP stood at 2.61%, after experiencing an acceleration of 0.15 p.p. when compared to the previous quarter. This performance followed the higher year-over-year growth in domestic demand, which stood at 3.78%. As for the labour market, the unemployment rate in the third quarter of 2018 was 9.50%, after an increase of 0.42 p.p. compared to 2Q18, and the year-over-year growth rate of employment accelerated to 1.37%. The Colombian peso depreciated against the US dollar with regard to 2Q18, and the average exchange rate stood at 2,898 $COP/USD in the third quarter. Finally, inflation reached 3.23%, after a rise of 0.03 p.p. with respect to the previous quarter.

Macroeconomic overview

  • In 3Q18, the year-over-year growth rate of the Colombian GDP experienced an acceleration of 0.15 p.p. compared to the previous quarter, to 2.61%. The main cause of this performance was the behavior of domestic demand, with accelerations of household consumption and investment.
  • Domestic demand grew at a rate of 3.78% in the third quarter of 2018, which meant an acceleration of 1.02 p.p. compared to the growth rate registered in 2Q18. However, external demand hampered GDP growth, as exports slowed and imports accelerated their growth.
  • Regarding the labour market, the unemployment rate stood at 9.50% in the third quarter of 2018, an increase of 0.42 p.p. compared to the previous quarter. For its part, employment growth registered a rate of 1.37% in 3Q18, 2.06 p.p. higher than the rate recorded in 2Q18.
  • The average exchange rate of the Colombian peso stood at 2,898 $COP/USD in this period, which represented a depreciation of 0.92% (+26 $COP/USD) with respect to the previous quarter. 
  • Inflation stood at 3.23% in 3Q18, after a rise of 0.03 p.p. compared to the previous quarter, close to the Bank of the Republic's 3% target. This growth was limited in part due to the behavior of demand, since with a high growth but below its potential, it limited the increase in prices.

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.