After two years of uncertainty and complex political, economic, and social processes, indicators show the first results of economic reactivation under President Gustavo Petro’s government.
The Colombian economy grew by 3.68% in July 2024 compared to the same month of the previous year, according to the Economic Monitoring Index (ISE) from DANE. This growth marks a significant recovery compared to June 2024, which showed a rather shy growth of only 1.1%.
The ISE reached 124.81 points in its original series in July 2024, compared to 120.38 points in July 2023. In the seasonally and calendar-adjusted series, the index stood at 123.43 points, representing an increase of 3.86% compared to July of the previous year.
The recovery is evident in several sectors:
- Primary activities (agriculture, livestock, hunting, forestry, fishing, and mining):
- Growth: 7.45% (original series)
- ISE Points: 112.39
- Adjusted series: 7.14% growth (108.62 points)
- Secondary activities (manufacturing and construction):
- Growth: 1.47% (original series)
- ISE Points: 95.84
- Adjusted series: 2.05% growth (97.14 points)
- Tertiary activities (services, commerce, etc.):
- Growth: 3.29% (original series)
- ISE Points: 135.51
- Adjusted series: 3.49% growth (134.12 points)
In the cumulative period from January to July 2024, the ISE registered a growth of 1.89% in its original series, surpassing the 1.09% of the same period in 2023.
Leonardo Villar Gómez, Manager of the Central Bank of Colombia, contextualizes this data:
“What we have seen is that, despite being forced to implement a rather strong adjustment policy in recent years, economic growth has been recovering significantly. The recession that many diagnosed at one point did not materialize. What we are seeing today is favorable growth, positive growth, and growth that is higher quarter after quarter.”
Boost of the Import Sector
The external sector shows signs of recovery. Javier Díaz, President of Analdex, highlights:
“The import figures for July bring us good news. A process of recovery in purchases from abroad, growth in July of 12.9%, and a great performance in the recovery of imports in the manufacturing sector.”
Díaz adds that this growth in imports reflects an improvement in economic performance, particularly in the industrial sector, which had experienced declines in previous months. He interprets this increase as an indicator of better dynamics in the Colombian economy.
Cluster Strengthening Policy
The national government, through the Ministry of Commerce, Industry, and Tourism, has invested more than 16.9 billion pesos to increase productivity and internationalization of 101 clusters in 31 departments. This strategy, called ‘Cluster Territories‘, has benefited 1,164 companies, of which 92% are MSMEs.
The Vice Minister of Business Development (acting), Lorenzo Castillo Barvo, emphasizes:
“Strengthening clusters will allow products and services from the territories to be more competitive, thus transitioning from an extractive economy to a more diversified one, addressing one of the main problems hindering the country’s productive development.”
Some notable results include:
- 27% increase in productivity and 16% in sales of the companies served.
- Support for clusters in sectors such as manufacturing, tourism, services, and agribusiness.
- Development of projects in regions affected by conflict (PDET municipalities).
The ‘Cluster Territories’ strategy aligns with the five pillars of the Industrialization Policy: energy transition, health, defense and life, agro-industrialization, and food sovereignty.
This initiative demonstrates the government’s commitment to inclusive and diversified economic development, seeking to strengthen the competitiveness of Colombian companies in the global market.
