Colombia’s economy grew 3.5% from a year earlier in the second quarter of 2024, up from 2.2% in the first quarter, marking its strongest quarterly expansion since the first quarter of 2023. Growth was driven by a rebound in domestic demand, especially household consumption and gross fixed capital formation, alongside strong contributions from services such as trade, transportation and hospitality, resilient manufacturing, and higher public spending tied to faster infrastructure investment. Easing inflation and a gradual normalization in monetary conditions have supported the recovery, while the central bank has kept its benchmark interest rate at 13.25% since April 2024 and analysts expect cuts later in the year as inflation moves toward the 3% target. The stronger-than-expected data has supported the Colombian peso and sovereign bonds, while economists see full-year growth of about 2.5% to 3.0%. Risks to the outlook include El Niño-related effects on agriculture and energy prices, global economic uncertainty, and the government’s fiscal reform agenda. The unemployment rate stood at 10.3% in June, and analysts say gains may remain uneven across rural areas and the informal economy.