Consumption in Colombia is losing strength at a faster-than-expected pace and will impact GDP
Consumption has been the protagonist of economic growth in recent months. Photo: AI-generated image.
TL;DR
- Colombian household consumption is decelerating more than predicted at the start of 2026.
- Retail trade grew 7.8% annually, falling short of the 10% expected by analysts.
- Weakness in hardware and fuel sectors contributed to the slowdown.
- Reduced housing construction is linked to the decline in hardware sales.
- High interest rates and tighter credit are impacting spending on high-value goods like vehicles.
- Spending is shifting towards goods like electronics, appliances, and clothing, financed by disposable income.
- The article projects lower GDP growth for 2026 (2.4%) and 2027 (2.1%).