Colombia | Strong dynamics of Colombia's economic activity at the beginning of 2022

In the first quarter, GDP grew 8.5% year-over-year and 1% quarter-over-quarter. Consumption remained a good dynamic driven by spending on durable and semi-durable goods and the services sector. Investment, which performed well, was driven by the purchase of machinery and the advance of intellectual property.

Key points

• Key points:
• The dynamics of the beginning of the year 2022 were outstanding, even above the initial reports that had been given, as the monthly activity figures for January and February were revised upwards.
• Household consumption continued to make the largest contribution to GDP, growing above GDP and increasing its share of aggregate demand. It grew by 12.2% annually and by 2.3% quarter-on-quarter.
• Investment grew above GDP and helped the investment rate to continue its recovery process. In March 2022, the investment rate stood at 19.7% of GDP, above the 18.1% of the 2021 average.
• Imports continue to gain relevance within GDP. While between 2005 and 2019 they meant, on average, 20% of GDP, in 2021 they were already 22.8% and in the first quarter of this year they reached 26.7% of GDP.
• For the full year 2022, at BBVA Research we expect GDP growth of 4.5%, with an upward bias due to higher growth than expected at the beginning of the year.

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