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Macroeconomic outlook report: Colombia

First quarter of 2018

During the first quarter of 2018, the year-over-year growth rate of the Colombian GDP stood at 2.59%, after experiencing an acceleration of 0.95 p.p. when compared to the previous quarter. The y/y growth rate of domestic demand slowed to 1.57%. As for the labor market, the unemployment rate in the first quarter of 2018 was 9.40%, after an increase of 0.77 p.p. compared to 4Q17, and the year-over-year growth rate of employment slowed to 0.59%. The Colombian peso appreciated against the US dollar and the exchange rate stood at 2,827 COP/USD. Finally, inflation reached 3.14%, after a decline of 0.95 p.p. with respect to the previous quarter.

Macroeconomic overview

  • In 1Q18, the year-over-year growth rate of the Colombian GDP experienced an acceleration of 0.95 p.p. compared to the previous quarter, to 2.59%. The main cause of this performance was the behavior of the external sector, with a faster acceleration of exports than the recorded on imports.
  • Domestic demand grew at a rate of 1.57% in the first quarter of 2018, which meant a deceleration of 0.76 p.p. compared to the growth rate registered in 4Q17. This was due to lower growth in gross capital formation.
  • Regarding the labor market, the unemployment rate stood at 9.40% in the first quarter of 2018, an increase of 0.77 p.p. compared to the previous quarter. For its part, employment growth registered a rate of 0.59% in 1Q18, 0.25 p.p. lower than the rate recorded in 4Q17.
  • The exchange rate of the Colombian peso stood at 2,827 COP/USD in this period, which represented an appreciation of 5.79% with respect to the previous quarter. 
  • Inflation stood at 3.14% in 1Q18, after a decline of 0.95 p.p. compared to the previous quarter. This behavior was explained by the deceleration of the prices of all categories of goods and services except transport.

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

© 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.