Colombia Industrial Output Rises in March

Industrial production in Colombia rose 3.9% year-on-year in March 2026, up from 1.4% in February and well above market expectations of a 1.8% gain. Marking the highest level in 6 months, the expansion was driven by gains in beverage manufacturing (16.7%), pharmaceutical products, medicinal chemicals manufacturing (17.1%), petroleum refining, and fuel blending (6.9%), food processing (10.5%) and transport equipment (32.9%). In contrast, production declined for manufacture of paper, cardboard, and their products (-7.3%), manufacture of basic chemicals and their products (-9.1%) and spinning, weaving, and finishing of textiles (-15%). Meanwhile, retail sales increased 3.8% while industrial employment declined 0.6%.

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 of 0.6%. 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%.