Colombian Economy Gains Momentum: GDP Grows 3.6% in Third Quarter Fueled by Consumption and Services

Original article: Economía colombiana toma nuevo impulso: PIB crece 3,6% en el tercer trimestre, empujado por consumo y servicios

The Colombian economy displayed renewed vigor in the third quarter of the year, achieving a Gross Domestic Product (GDP) growth of 3.6% compared to the same period in 2024, according to official data released by the National Administrative Department of Statistics (DANE). This result, surpassing previous quarters, was primarily driven by strong household consumption and robust performance in key sectors such as services and manufacturing.

GDP performance from July to September 2025 not only exceeded the 2.0% growth recorded in the same period of 2024, but also improved compared to earlier quarters this year, where the economy expanded by 2.6% from January to March and 2.1% from April to June.

DANE’s report highlights that, from a production perspective, the main growth drivers were public administration, education, and health activities, which collectively registered an 8% expansion, contributing over one percentage point to the total GDP variation.

Additionally, the trade, transportation, and hospitality sectors experienced vigorous growth of 5.6%, while the manufacturing industry advanced significantly by 4.1%.

Domestic Demand and Household Consumption as Pillars

Breaking down the spending components, the document reveals a clear rebound in domestic demand. The standout indicator was household consumption, which expanded by 5.7%, indicating that Colombian families increased their spending on goods and services—a positive sign for the country’s economic activity.

Meanwhile, gross capital formation, which measures investment in machinery, equipment, and infrastructure, also showed signs of recovery, growing by 2.2%. This suggests a moderate reactivation in business investment confidence and expenditure.

Outlook for the End of 2025

With this third quarter result, the Colombian economy has accumulated a growth of 2.8% in the first nine months of 2025 compared to the same period the previous year. The dynamism observed in consumption, services, and trade marks a path of moderate recovery that strengthens the outlook for the year’s end.

This diagnosis of an economy gaining traction is reinforced by the Economic Tracking Indicator (ISE), considered a monthly snapshot of GDP.

In this regard, DANE reported that the ISE registered a growth of 4.0% in September, confirming that productive activity is maintaining an upward trend month by month. With fluctuations reaching a peak of 4.6% throughout the year, this indicator consolidates the view of a country regaining momentum in several key sectors, noted Radio Nacional de Colombia.

Taken together, the data from the third quarter paints a more encouraging picture for Colombia, suggesting that internal economic drivers, particularly household consumption and service provision, are leading a process of stabilization and growth.