Servicios
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Transportation services play a critical role across all sectors of the economy by facilitating the movement of goods and services at all production levels. Although not all goods produced in a country require transportation due to inventory accumulation in industries and businesses or because…
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Investment, a crucial driver of a country’s economic growth, is intricately linked with increased productive capacity and infrastructure. After a notable upturn in certain investment components in 2021 and 2022, Colombia experienced a significant investment decline in the past year. High levels of…
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In 2023, the Colombian economy experienced a slowdown in economic activity, registering annual growth of 0.6% after the historical highs experienced in 2021 and 2022. This same year, inflation began to converge to the target, reaching 9.3 % at yearend amid a backdrop of a weakening in domestic…
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Annual inflation has been decreasing for a year and is projected to continue, with inflation at 5.5% in December and the 3% target to be reached in 2025.
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Inflation continues to decline but remains well above 3%. It is anticipated to decrease significantly in 2024 and draw closer to the established target in the first half of 2025.
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After facing the adverse effects brought on by the COVID-19 pandemic, in 2021 and 2022 the Colombian economy grew at a remarkable pace, reflected in a widening of the current account deficit to levels close to its historical maximums (-5.6% and -6.1% of GDP, respectively). In contrast,…
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During the second quarter, headline inflation remained stable, while core inflation continued to fall. Inflation would continue its measured downward path to meet its 3.0% target by the end of 2025.
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Rent is the most important CPI component for Colombian households, representing approximately one-fourth of the household’s index expenditures. Price increases for this component exhibit signifcant inertia because they are indexed to the headline infation of the prior year. In turn, this introduces…
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The global economy experienced a substantial rise in infation in the aftermath of the COVID-19 pandemic and ensuing disruptions in the international supply chain, in addition to the impact on international energy prices resulting from the war between Russia and Ukraine. In emerging economies, this…
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In August 2024, it was projected that family remittance income received in Colombia surpassed USD 1000 million for three consecutive months, an amount of USD 187 million above the monthly average for 2023. The sustained increase of this external income has enhanced the signifcance of this component…
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In the third quarter, headline inflation continued to decrease and is expected to continue doing so gradually to reach 3.0% by the end of 2025.
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The cohort of credits that are originated in a particular period (generally one month) and are related to each other as they have been originated by credit institutions (CIs) under particular allocation conditions, risk appetite of the institutions, and economic situation1 is called vintage.
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Credit institutions (CIs) are exposed to credit risk, which can be understood as the possibility of incurring losses arising from a debtor or counterparty defaulting on its obligations. To mitigate this risk, CIs must constitute provisions based on the balance of loan disbursements loan portfolio…
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During 2023, Colombian firms that turned to international financing sources faced interest rate increases and an appreciation of the peso against the dollar of 21.5%.1 Despite the positive effect on firms’ balance sheets due to the appreciation of the local currency, the presence of exchange rate…
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This special report analyzes the dynamics of Colombia´s real estate market and mortgage credit during the second half of 2024 and the first two months of 2025. It seeks to identify potential sources of vulnerability that may affect economic and financial stability. Specifically, it studies credit…
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As part of the inflation-targeting framework governing monetary policy in Colombia, Banco de la República uses the monetary policy interest rate (MPR) as an instrument. By changing the MPR, Banrep induces variations in market interest rates at different terms and in asset prices, thereby…
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Reserve requirements are an economic policy instrument that has historically played an important role in the fulfillment of the central bank’s mission worldwide. This requirement, set by the monetary authority of each country, mandates that banks and other credit institutions (CIs) to maintain a…
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At the 19 December 2023 meeting, the Board of Directors of Banco de la República (BDBR) announced the decision to gradually accumulate up to USD 1,500 million (m) in foreign reserves (FRs). The purpose of this measure was to strengthen Colombia’s external liquidity, consolidate the positive…
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The year 2025 will be a key for the payments industry with the launch of Bre-B, the new interoperable instant payments system developed by Banco de la República in collaboration with the fnancial industry since 2022. This system will allow real-time transfers with crediting of funds across all…
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This special report analyzes credit risk exposure and performance among credit institutions (CIs) using the latest available data, aiming to continue with the detailed monitoring of the evolution of delinquency. It complements the analysis presented in the Financial Stability Report for the second…
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Global growth expectations were revised downward, particularly for the US and its major trading partners, due to a deterioration in the external environment and increasing trade tensions.The adjustment in projections for developed economies reflects the uncertainty generated from trade policy…
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The international environment remained characterized by high uncertainty, although with signs of economic resilience.Global financial markets began the second quarter of 2025 (2Q25) amid trade tensions driven by new policy announcements by the United States.
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Given the increase in the working-age population, the employment-to-population rate (ER) remained stable in the recent period, standing at 57.5% in the last rolling quarter, with a notable difference between urban areas (59%) and other municipalities and rural areas (55.9%).
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As of February 2025, employment continued to grow at an annual rate of 3.9%, primarily driven by rural employment, which grew at a 4.9% rate.This has resulted in a 1.4 percentage point (pp) increase in the employment-to-population rate (EPR) and a 1.8 pp rise for rural areas. As a result, EPRs…
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Notes at the 27th Asobancaria Treasury CongressLeonardo Villar, Governor of Banco de la República (the Central Bank of Colombia)Cartagena, 13 February 2025Thanks to Asobancaria, and particularly to Jonathan Malagón and Alejandro Vera for the invitation to this event.
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