Colombia | Private consumption continues to lead the recovery

Summary

In the third quarter, GDP maintained a good dynamic, growing 13.2% in annual terms and 5.7% compared to the second quarter. Private consumption was at 107% of its pre-pandemic level and public consumption remains strong thanks to spending associated with the vaccination program.

Key points

• Key points:
• Domestic demand continued to grow above GDP (16.8% vs. 13.2% y/y), driven mainly by final consumption, but also with a significant increase in public consumption.
• Fixed investment, which grew 7.5% year-on-year, maintains a great heterogeneity in its components and has not yet recovered the level it had already reached in the first quarter.
• The civil works sector is lagging behind in its recovery and will need the commitment of national, regional and local governments to relaunch it as a sector that supports the economic reactivation of other activities.
• BBVA Research expects growth of 9.2% for the entire year 2021. Household consumption will consolidate as the main driver of growth, giving way to a greater role for exports and investment in 2022.

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