Unemployment

Domestic demand will lead Colombia’s economic recovery, driven by improved financial conditions that will strengthen consumption and investment. This will provide a significant boost to sectors such as manufacturing and retail. In the long run, increasing investment will be essential to raise the country’s growth potential.

The national unemployment rate was 9.7% in August, up from 9.3% in August 2023. Seasonally adjusted, the August unemployment rate was 10.0%, unchanged from July this year, and below its average level for the first half of the year, which was 10.6%.

Despite higher recent GDP growth, the productivity of the Spanish economy has been falling behind that of the EU, making convergence in per capita income difficult. The projections of the Ageing Report 2024 do not foresee any improvement in the outlook.

Colombia's economic growth will begin to accelerate gradually during the second half of the year. Domestic demand is expected to consolidate by 2025. Growth is projected at 1.8% in 2024 and 2.8% in 2025. Inflation will continue to decrease, enabling the Central Bank to expedite rate cuts from the end of the year.

The latest Observatory published by BBVA Research, FEDEA and the Sagardoy Foundation shows a labor market in transition in Spain. Job creation continues, but at a significantly slower pace than in the first half of the year.

The Colombian economy will grow 1.2% in 2023 and 1.5% in 2024. The recovery will start slowly from the first part of 2024, driven by the improved performance of private consumption. Inflation is expected to show a gradual reduction path that will allow the intervention rate to come down from December 2023.