Publications

Private consumption has become Colombia’s key growth engine. Driven by employment, income, credit, and remittances, it is shifting toward services and entertainment, while demographic changes reshape household spending patterns for the years ahead.

The BBVA Research Big Data Consumption Indicator reported a (-)1.3% MoM drop in July, due to the slowdown in the goods segment (-2.3% MoM) and the stagnation of the services component (0.1% MoM).

Household spending has emerged as Colombia’s main growth engine in 2025, driven by rising income, improving credit, strong remittances, and renewed consumer confidence. Despite early signs of labor market cooling, consumption remains the key economic driver.

The BBVA Research Big Data Consumption Indicator recorded a 0.1% month-on-month increase in June, amid a (-)2.0% MoM decline in the services sector

The Big Data Private Consumption Index showed a marked slowdown in its year-over-year growth in June (3.0% compared to 15.6% in May).

Argentina’s economy kept recovering in Q2 2025, driven by fiscal order, a re-monetization strategy, and a flexible exchange rate scheme. The outlook is still shaped by the electoral context and the challenge of ensuring lasting stability in a volatile global environment.

Colombia’s economy gains traction through consumption and easing interest rates, while investment gradually recovers. Inflation is declining, yet fiscal risks persist. Global uncertainty—with trade and financial tensions—adds pressure. Moderate growth is forecast for 2025 and 2026.

Inflation in Colombia eased in May 2025, reaching 5.05% annually, its lowest in 43 months, with a monthly change of 0.32%. This moderation was mainly driven by the non-food basket, led by services and regulated items, correcting April's uptick and paving the way for gradual rate cuts by the Central Bank.