Colombia's Economic Growth in Q3 2024

By Carlos Vargas and Nelson Bocanegra

BOGOTA (Reuters) – Colombia's economy grew 2.0% year-on-year in the third quarter, according to the government's DANE statistics agency on Monday.

This result fell short of market expectations of 2.3% based on a Reuters poll last week and also below the central bank's technical team's 2.4% forecast.

Additionally, the economy saw a 0.2% growth from the second quarter, as reported by DANE.

Key Growth Sectors

The year-on-year expansion was primarily driven by the following sectors:
– Entertainment: +14.1%
– Agriculture: +10.7%
– Finance: +4.4%

Conversely, the mining sector experienced a contraction of 7.1%, while manufacturing shrank by 1.3%, DANE stated.

Private Investment and Inflation

Private investment in the third quarter rose by 22.7% year-on-year. For the first nine months of 2024, economic output increased by 1.6% year-on-year.

Inflation was recorded at 5.41% in October, significantly above the central bank's 3% target. Since December, the central bank has lowered its benchmark interest rate by 325 basis points to 9.75%.