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Macroeconomic outlook report: Colombia

First quarter of 2020

In the first quarter of 2020, the y/y growth rate of Colombian GDP stood at 0.41%, after registering a considerable decrease when compared to the previous quarter. This behavior was driven by the remarkable fall in both the external and internal demand of the Colombian economy, heavily affected by the containment measures carried out during the first quarter of 2020 by the Colombian and world governments to contain the spread of the Covid-19. Regarding the labor market, the unemployment rate increased when compared to the previous quarter to 11.22%, while the year-over-year growth rate of employment creation decelerated to -2.66%. With respect to the exchange rate, the Colombian peso stood at 3,672 Colombian pesos per dollar, after a depreciation of 275.52 pesos per dollar when compared to 4Q19. Finally, inflation reached 3.73%, decreasing when compared to the previous quarter.

Macroeconomic overview

  • The Colombian economy decreased its year-over-year GDP growth rate by 2.94 p.p. to 0.41%. Both the domestic and external demand sharply fell this quarter. Exports were strongly affected this quarter because of the containment measures, registering a contraction in its annual growth rate when compared to 4Q19, reaching -5.83%.
  • Regarding the labor market, the unemployment rate increased during the first quarter of 2020 to 11.22%, an increase of 0.70 p.p. over the rate recorded in the previous quarter. Additionally, the year-over-year growth rate of employment generation in Colombia decelerated by 2.62 p.p. during 4Q19, reaching a -2.66% rate.
  • During 1Q20, the Colombian peso depreciated against the dollar by 275.52 pesos per dollar when compared to 4Q19. Thus, the average nominal exchange rate for the first quarter of the year was 3,672 Colombian pesos per dollar.
  • The year-on-year CPI growth rate reached 3.73%, after decreasing 0.10 percentage points when compared to 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.