Colombia Industrial Output Rebounds 1.4%

Colombia’s industrial production grew 1.4% year-on-year in February 2026, a sharp reversal from the 0.5% decline in January and beating market expectations. The expansion was driven by a stronger performance across sectors, with 20 out of 39 industrial activities posting growth. Significant increases were recorded in motor vehicles (26.0%), petroleum refining (11.9%), beverage manufacturing (7.7%), pharmaceutical products (9.2%), and transport equipment (22.0%). In contrast, several sectors faced challenges, including iron and steel (-20.5%), basic chemicals (-11.6%), coffee threshing (-38.5%), and cacao and chocolate (-21.9%). Meanwhile, retail sales declined 2.5% and industrial employment fell 0.4%, reflecting that while production has regained momentum, consumer demand and labor market recovery still face significant headwinds in the current economic environment.

Colombia’s industrial production declined 0.5% year-on-year in January 2026, easing slightly from a 0.6% drop in December but falling well short of expectations for a 0.2% increase. The contraction was largely driven by weak performance across most sectors, with 22 out of 39 industrial activities posting annual declines, an improvement from 24 sectors reporting decreases in the previous month. Significant declines were recorded in basic chemicals (-10.4%), electrical equipment (-9.6%), beverage manufacturing (-2.4%), cocoa, chocolate and confectionery (-16.2%), and sugar and unrefined sugar cane (-10.9%). In contrast, several sectors recorded strong growth, including motor vehicles (66.9%), petroleum refining and fuel blending (6.6%), transport equipment (26.6%), apparel (8.0%) and pharmaceutical products (6.3%). Meanwhile, retail sales declined 0.7% and industrial employment rose 0.1%.

Colombia's industrial production fell -0.6% year-on-year in December 2025, reversing the 0.7% expansion in November and marking a renewed contraction. The decline was primarily driven by negative results in the majority of manufacturing divisions, with 24 of the 39 activities registering annual decreases. Beverage manufacturing (-3.5%), basic chemicals (-12.4%), metal products (-12%), coke and refined petroleum products (-3.5%), and basic iron and steel industries (-9.2%) exerted the largest downward contributions to the national total. In contrast, 15 activities posted positive variations but were insufficient to offset broader weakness.