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Macroeconomic outlook report: Colombia

Fourth quarter of 2019

In the fourth quarter of 2019, the y/y growth rate of Colombian GDP stood at 3.39%, which was lower than in the previous quarter. The behavior of GDP was driven by the performance of both public and private consumption and due to the increase in the trade deficit. In the labor market, the unemployment rate fell when compared to the previous quarter to 10.50%, while the year-over-year growth rate of employment creation accelerated to -0,04%. With respect to the exchange rate, the Colombian peso stood at 3,397 Colombian pesos per dollar, after a depreciation of 1.14 pesos per dollar. Finally, inflation reached 3.83%, increasing when compared to the previous quarter.

Macroeconomic overview

  • The Colombian economy decreased its year-over-year GDP growth rate by 0.02 p.p. to 3.39%. Both public and private consumption registered decreases this quarter. Furthermore, even though imports experienced a higher deceleration than exports, the trade deficit continued to grow this quarter.
  • In the labor market, the unemployment rate fell during the fourth quarter of 2019 to 10.50%, a decrease of 0.21 p.p. over the rate recorded in the previous quarter. In addition, the year-over-year growth rate of employment generation in Colombia accelerated by 1.79 p.p. during 4Q19, reaching a -0.04% rate.
  • The Colombian peso depreciated against the dollar by 1.14 pesos per dollar when compared to the average value recorded in the third quarter of 2019. Thus, the average nominal exchange rate for the fourth quarter of the year was 3,397 Colombian pesos per dollar.
  • The year-on-year CPI growth rate reached 3.83%, increasing 0.04 percentage points 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., 2020. 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.