Most recent posts from Colombia

Colombia's labor participation dropped from 68% to 64% in the last decade, driven by youth. This stems from two factors: more time spent studying (higher tertiary enrollment) and a smaller population share due to demographic aging. Higher inactivity due to studies boosts future human capital.

By a majority, Colombia's central bank increased the interest rate by 25bp to 12.25%. The decision responds to the rebound in annual inflation to 6.2% in August and rising expectations, despite signs of a slowdown in economic activity and a weak labor market.

Annual inflation resumed its upward trend in August and stood at 6.24%, 21 bps above July and 114 bps above the level observed at the end of last year.

The national unemployment rate stood at 8.1% in July, down from 8.8% a year earlier and its lowest level for the month since 2001. The decline was driven by higher employment, which more than offset the increase in labor force participation.

Annual inflation declined to 6.03% in July, after four consecutive months of increases. As a result, it decreased by 11 bps compared to June, although it remains 93 bps above the level observed at the end of last year.

The Colombian labor market closed a solid first half of 2026. In June, the unemployment rate stood at 8.0%, the lowest for this month since 2001. However, sectoral drivers shifted, with public administration playing a less prominent role compared to other sectors.

The El Niño phenomenon is not uniform; neither are its economic impacts. It can bring droughts or torrential rains, affecting each country differently. In Argentina it can favor crops, in Colombia it can generate inflationary pressures, and in Peru it can alter marine productivity and exports.