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Macroeconomic outlook report: Colombia

Fourth quarter of 2017

During the fourth quarter of 2017, the y/y growth rate of Colombian GDP stood at 1.58%, after registering a slowdown of 0.68 p.p. with respect to the previous quarter. The y/y growth rate of domestic demand dropped 1.32% in this period. With regard to the labor market, the unemployment rate decreased by 0.59 p.p. to 8.63%, while the y/y growth rate of employment increased to a rate of 0.84%. The Colombian peso depreciated with respect to the dollar in this quarter, reaching 3,001 $COP/USD. Inflation stood at 4.09% in 4Q17, after increasing by 0.12 p.p. with respect to the previous quarter.

Macroeconomic overview

  • Colombian GDP y/y growth rate experienced a decrease of 0.68 p.p. during the fourth quarter of the year with respect to the previous one, down to a rate of 1.58%. The main driver of this behavior was the greater growth registered in the same period during the previous year. Furthermore, the growth weighted down by the negative effects that the cessation of air transport provoked on the different sectors of the Colombian economy. The average growth rate of the Colombian economy stood at 1.77%, below the rate registered in 2016.
  • Domestic demand stood at 1.32% in 4Q17, after a deceleration of 0.84 p.p. when compared to the previous quarter.
  • Regarding the labor market, the unemployment rate stood at 8.63% in the fourth quarter of 2017, which represents a decrease of 0.59 p.p. when compared to the previous quarter. The employment rate registered in 4Q17 a 0.84% increase, which was 0.34 p.p. greater when compared to the previous quarter.
  • The exchange rate of the Colombian peso stood at 3,001 $COP/USD in this period, which represents a depreciation of 1.52% when compared to the previous quarter. The unexpected fall of oil prices explained the depreciation of the Colombian currency.
  • Inflation stood at 4.09% in 4Q17, after an increase of 0.12 p.p. when compared to the previous quarter. That increase broke the downward trend initiated by the end of 2016. The main driver of this performance was the acceleration in housing, transports and food prices. /li>

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© GMS Management Solutions, S.L., 2018. 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.