Colombia: Activity moderation in 2Q14 was in line with expectations

Summary

Economic growth in the second quarter stood at 4.3% YoY (Figure 1). This meant a slowdown (expected) with respect to the first period of the year’s performance, when GDP expanded 6.5%. Moderation is also checked in the quarterly change, which went from 2.5% in 1Q14 to a contraction of -0.1% in 2Q14. Again, government spending led the result of activity in both the expenditure side (measured by social services) and the investment side (civil construction works). Services, commerce and transportation also had a positive performance. In contrast, mining and manufacturing returned to negative territory (Figure 2). All in all, we maintain in 4.9% our outlook for GDP growth in 2014, with no significant bias.

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