Colombia Economic Growth Picks Up in Q2

Colombia’s economy expanded 3.5% year-on-year in the second quarter of 2026, accelerating from 2.2% growth in the previous quarter. Growth was supported by public spending, although its pace eased to 12.2% from 13.2%, while household consumption strengthened to 2.8% from 2.7%. Activity also accelerated in public administration, health and defense (10% vs 5.6%), entertainment (9.5% vs 3.2%), financial services (4.3% vs 2.8%) and utilities (4.8% vs 2.6%). However, risks to the outlook include the recent earthquake, the strongest in half a century, and dry weather associated with the El Niño phenomenon. On a seasonally adjusted quarterly basis, the economy expanded 1.3%, accelerating sharply from a 0.6% increase in the prior quarter.

Colombia’s economy expanded 2.2% year-on-year in the first quarter of 2026, matching market expectations but easing slightly from 2.3% growth in the previous quarter. The main contributors to annual GDP growth were public administration, defense, education, health and social services, which rose 5.7%, followed by wholesale and retail trade, transportation, accommodation and food services, up 2.9%, and manufacturing industries, which also increased 2.9%. On a quarterly basis, GDP grew 0.6% in Q1, accelerating from a 0.1% expansion in the fourth quarter of 2025.

Colombia’s GDP grew by 2.3% year-on-year in the fourth quarter of 2025, slowing from 3.6% in the previous quarter and falling short of market expectations for a 3% expansion. Growth was primarily supported by a 3.4% increase in wholesale and retail trade, alongside a 4.8% rise in public administration, defense and related services, and a strong 11.5% expansion in recreation services. Additional gains were recorded in utilities (2.9%), real estate activities (1.9%), professional and scientific activities (1.5%), manufacturing (1%), and financial services (0.7%). In contrast, output declined in mining and quarrying (-2.9%), construction (-2.6%), communication (-1.2%), and agriculture (-0.4%). On a seasonally adjusted quarterly basis, the economy expanded by 0.1%, slowing sharply from 1.2% growth in the third quarter. Considering full 2025, the economy expanded by 2.6%, supported by wholesale and retail trade (4.6%), public administration and defense (4.5%) and recreation services (9.9%).