BOGOTA: Colombia statistics institute DANE reported that domestic demand rose 0.6% quarter-on-quarter (qoq) during the first quarter of 2015 (seasonally adjusted, non-annualized).
This was lower than real GDP growth of 0.8% qoq, and slower than 4Q 2014 domestic demand growth of
1.9% qoq.
The main driver of domestic demand growth was fixed capital formation, which rose 3.6% relative to the fourth quarter of 2014. The rest of GDP and domestic demand components contracted on a sequential basis.
Consumption fell 0.6% qoq and government spending 0.1% qoq.
This was the first time since the third quarter of 2009 and the third quarter of 2008 that consumption and government spending respectively contracted in sequential terms.
Meanwhile, exports fell 2.2% qoq, and imports 3.4% qoq.
In annual terms, domestic demand grew 4.5% in the first quarter, faster than real GDP growth of 2.8%.
Fixed capital formation grew 7.2%, while household and government spending were up 3.9% and 2.3% respectively.
Meanwhile, imports grew 8.1%, despite the depreciation of the peso.
Analysts expect fixed capital formation to be weak throughout the year, as lower oil prices effect growth.
