Colombia: Economic activity growth eases in January
Latest reading: Economic activity grew 2.6% year on year in January, deteriorating from December’s 3.0% rise but outpacing market expectations. Looking at the details of the release, the agriculture sector swung into contraction, outweighing sharper increases in industrial and services sector output.
Still, annual average economic activity growth rose to 1.9% in January from 1.8% in December, pointing to an improving trend.
On a monthly basis, economic activity increased 0.8% in seasonally adjusted terms in January, which was below December’s 1.5% expansion.
Panelist insight: Goldman Sachs’ Santiago Tellez commented:
“We expect activity momentum will moderate in the remainder of Q1, as some transitory headwinds dissipate. Thereafter, we see positive but below-trend real growth, bolstered by further disinflation gains, the progressive normalization of the policy stance, and in the near-term a large minimum wage hike. Elevated domestic policy uncertainty will continue to weigh on consumer and business confidence. Depressed housing investment and slowing of the flow of US workers remittances are the main downside risk to our growth forecast.”