Colombia | GDP accelerates: demand outpaces production

Summary

The Colombian economy accelerated in the second quarter, with GDP growth of 3.5% year-on-year, driven by domestic demand (+4.9%). This gap was covered by a 7.5% increase in imports, while exports fell. Public spending was a key, but temporary, driver.

Key points

• Key points:
• Government consumption grew by 12.2% year-on-year, a much faster pace than household consumption, which was 2.8%. This boost was due to temporary factors such as retroactive payments and election-related expenses.
• Private spending is concentrated in goods with a high imported component. Consumption of durable goods grew by 15.9% and investment in machinery and equipment by 13.2%.
• Construction grew by 2.2% year-on-year, although with opposing dynamics: civil works expanded by 17.1%, but residential and non-residential buildings fell by 3.2%.
• The manufacturing industry grew by 2.0%, while the agricultural sector contracted by 2.1%, showing a heterogeneous performance on the supply side.
• Despite the strong second-quarter data, the growth forecast for 2026 is maintained at 2.6%, expecting a moderation in public spending and in the private components most sensitive to interest rates.

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