Colombia | ¿How are households consuming?

Summary

Private consumption balance between goods and services changed due to pandemic spending patterns, the subsequent recovery and the current slowdown. In addition, the new momentum of goods consumption since 2024 and the role of government spending are expected to change, again, the composition of household spending.

Key points

• Key points:
• During Covid-19 lock down, household spending fell across the board, with private services with social interaction (restaurants, tourism, mass events) falling the most. Then, during the post-pandemic consumption rebound, the importance of spending on private services fell even more.
• Since mid-2022, the increase in financial costs and the moderation of economic activity led households to reduce indebtedness and spending, which deteriorated the expansive cycle of goods consumption.
• The recovery of consumption, expected for the second half of 2024, will again be led by goods (accompanied by the dynamism of social services).

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