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Colombia’s economy grows 3.6pc in 3Q

Colombia’s economy grows 3.6pc in 3Q

Bogota, 18 November (Argus) — Colombia's economy expanded 3.6pc in the third quarter from a year earlier, as solid growth in the agriculture sector and stronger domestic demand helped offset a deepening contraction in the oil and mining industries. Most of the third-quarter expansion was attributable to increased household and business demand and a 2.4pc rise in agricultural activity, driven by higher exports of coffee and tropical fruits, the national statistics agency Dane said Tuesday. Manufacturing grew by 4.1pc while retail and wholesale trade grew by 5.6pc. The quarterly growth figure exceeded analysts' 2.9pc median estimate and the 2.1pc growth recorded in the second quarter. The mining and hydrocarbons sector contracted for a sixth consecutive quarter, shrinking 5.7pc in the third quarter from a year earlier. The decline follows a 10.2pc contraction in the second quarter and reflects the impact of a heavy tax burden, restrictions on coal exports, falling exploration activity, and deteriorating security conditions in key oil- and coal-producing regions. The coal subsector fell 5.6pc in the quarter, after dropping 14.6pc in the second quarter and falling 7pc in the first quarter. Exporters of coal and crude have been subject to a 1pc surcharge since late January to finance more military and social spending in the Catatumbo region in Norte de Santander department amid escalating violence in this region along the Venezuelan border. The administration of President Gustavo Petro has also used emergency powers in response to escalating violence along the Venezuelan border. In May, the government raised the withholding tax on coal miners to as much as 4.5pc, more than double the previous 2.2pc, adding financial pressure to an already strained sector. Miners have also protested Petro's decision to impose a total ban on steam-coal exports to Israel, closing a loophole that previously allowed some shipments to proceed. Mining accounts for 2.4pc of Colombia's GDP and is the country's second-largest export sector after oil. The oil subsector contracted 3.7pc in the third quarter, following a 6.9pc decline in the second quarter — the steepest drop since the hydrocarbon sector began weakening in early 2024. Reduced exploration activity, tax pressure and social unrest have weighed heavily on the industry, oil analyst Julio César Vera said. Colombia produced an average of 747,800 b/d of crude in January–September, a 3.8pc decrease from the same period a year earlier. By Diana Delgado Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.