During the second quarter of 2020, the y/y growth rate of Colombian GDP stood at -15.45%, after registering a considerable deceleration when compared to the previous quarter. This behavior was due to the effects of the pandemic and the containment measures carried out during the quarter, which heavily affected the economic activity. Regarding the labor market, the unemployment rate increased when compared to the previous quarter up to 20.62%, while the year-over-year growth rate of employment creation decelerated down to -21.85%. With respect to the exchange rate, the Colombian peso registered a 16.06% depreciation against the dollar with respect to 1Q20, registering an average nominal exchange rate of 3,820 Colombian pesos per dollar. Finally, the year-on-year growth rate of the CPI reached 2.85%, after registering a decrease with respect to the previous quarter.

 


Macroeconomic outlook report: Colombia 2Q20

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Macroeconomic overview

  • The Colombian economy decreased its year-on-year GDP growth rate by 16.43 p.p., down to -15.45%. This behavior was due to the effects of the pandemic and the containment measures carried out by the government during the quarter, which heavily affected the economic activity. Domestic demand was hard hit during this quarter, registering a 19.24 p.p. contraction compared to the previous quarter, down to a year-on-year growth of -16.80%.
  • Regarding the labor market, the unemployment rate increased during the second quarter of 2020, up to 20.62%, after registering an increase of 9.37 p.p. compared to the rate recorded in the previous quarter. Additionally, the year-over-year growth rate of employment generation in Colombia decreased by 19.18 p.p. during 2Q20, reaching a rate of -21.85%.
  • During 2Q20, the Colombian peso registered a 16.06% depreciation against the dollar with respect to the previous quarter. Thus, the average nominal exchange rate for the second quarter of the year was 3,820 Colombian pesos per dollar.
  • The year-on-year CPI growth rate reached 2.85%, after decreasing 0.88 percentage points when compared to the previous quarter.

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