Bogotá — The National Administrative Department of Statistics (Dane) reported this Monday that The Colombian economy grew 8.5% in the first quarter of the year, a rebound of 7.6 percentage points (pps) when compared to what was reported in the same period of 2021 (0.9%).
The director of Dane, Juan Daniel Oviedo, explained that commerce, manufacturing and artistic and entertainment activities were the three sectors that contributed the most to the growth of the economy in the first three months of 2022. In total these contributed 5.5 pps.
According to Juan Pablo Espinosa, director of economic research at Bancolombia, “This start can partially offset the negative effect that uncertainty, inflation and higher interest rates will have in the second half of the year.”
Oviedo also said The Colombian economy, in the series adjusted for seasonal and calendar effects, grew 8.2% annually in the first quarter. With this result, the national economy is the third fastest growing in the period in question among the OECD countries. Only Portugal (11.9%) and the United Kingdom (8.7%) grew more than Colombia.
What happened in March?
In March, the Colombian economy grew 7.6% according to the original series of the Economic Monitoring Indicator (ISE). This figure is lower than the rebound seen in the same month of 2021 (11.7%). The Dane also said that the ISE data for January and February were adjusted, officially remaining at 8.2% and 9%, respectively.
According to the ISE in its series adjusted for seasonal and calendar effect, The inter-monthly growth of the economy in March was 0%, which represents that the country is moving towards a “convergence path of the 2-digit monthly growth that we saw in the reactivation agenda to 1-digit growth which is around 8% on average in the first three months of 2022″, explained Oviedo.
In March 2022, tertiary activities (trade, transport, insurance, among others) were the ones that contributed the most to the total variation of the ISE. These contributed 7 pps and grew 10.1% annually in the third month of the year.
Regarding secondary activities (manufacturing and construction), the Dane reported that these contributed 1.2 pps to the total variation in the behavior of the economy in March. These activities grew 7.1% annually. However, Contrary to the above, primary activities (agriculture and extractive industries) contributed a negative 0.7 pps to the annual variation of the ISEits annual decrease was 5.5% per year.
The director of Dane, Juan Daniel Oviedo, commented that Compared to March 2021, there has been a change in trend in the growth of the sectors analyzed in the ISE, mainly in agriculture, mining and quarrying, and construction.
While agricultural activities grew 10.9% annually in March 2021, they decreased -7.1% in March 2022; For its part, the mining and quarrying industry remains in negative territory as it went from falling -6.1% in March 2021 to -1.9% in the same period of 2022. Construction also added negative pressure to the indicator as it went from growing 32.5% to -1.5% in the third month of 2022.