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Colombia PMI Manufacturing 47.8 in Sep-23

- Colombia's PMI Manufacturing in September 2023 stood at 47.8, indicating a contraction in the sector, but showing a slight improvement compared to the previous month.
- Despite this marginal improvement, the sector is still 1.66 points lower than the one-year average. Close monitoring and targeted intervention may be necessary to support the sector's recovery.

Banco de la Republica Colombia: Sep-23

• The Banco de la República resolved (by five votes to two for a cut) to maintain the monetary policy interest rate at 13.25%, amid higher-than-expected inflation rates of 0.7% and sustained economic activity levels, which are indicative of the prevailing economic uncertainties and market volatility.
• The inflationary environment is complicated by distortions in resource allocation and imposes restrictions on long-term financing for both public and private sectors, hindering economic growth and equity, particularly impacting the lower-income population strata adversely.
• The decision underscores the monetary policy’s ongoing dilemma and is closely aligned with the objective of steering inflation towards the 3% target, with future resolutions being contingent upon the assessment of forthcoming economic data and market conditions.

Colombia unemployment rate 9.29% in Aug-23

- The unemployment rate in Colombia decreased to 9.29% in August 2023, reaching its lowest level since November 2016.
- When compared to both the one-year and long-run averages, the current unemployment rate demonstrates significant improvements in the labor market, suggesting a potential strengthening of the economy.

Colombia industrial production -7.21% y-o-y in Jul-23

- Colombia's industrial production experienced a significant decline of 7.21% year-on-year in July 2023, the lowest growth rate since August 2020.
- Retail sales in Colombia fell by 8.18% year-on-year in July 2023, slightly below the consensus forecast.