The Colombian Peso: A Stubborn Survivor in a Wobbly FX World
The Colombian currency has shown an impressive stick‑in‑the‑mud streak, staying upbeat even as the dollar keeps dancing.
Why the Peso Is Keeping Its Cool
With GDP still inching upward – 1.7% growth in 2024 – there’s a tangible sense that the economy is on the mend.
- Coffee sector: an 8.1% rise thanks to a 22.5% jump in production – the sweet spot of trade balance.
- Public & Social services: education and healthcare up 4.2% – a win for people.
- Manufacturing & mining: chemical and textile plants down 2.1%; mining slumped 5.2% as coal & oil hit the sidelines.
- Construction: a quiet slowdown, especially in both residential and non‑residential builds.
Quarterly Take‑away
The last quarter pushed GDP up by 2.3%, mainly driven by trade, services, and agriculture. The Economic Tracking Index (ISE) nudged up 2.95% in December, raising the year‑long growth to 1.81% – a sweet bump over 1.08% from 2023.
What’s Next?
Future movements hinge on business confidence, job stats, and that ever‑unpredictable global drama – think the Ukraine‑Russia conflict, political swings, and general risk sentiment. The peso looks solid thanks to solid fundamentals, but a fresh wave of data could shift the sentiment.
Grab your coffee – the Colombian market could have a bright spot in its fiscal future.
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