Colombia’s economy has recorded a third straight month of growth in industrial production, according to figures from the national statistics agency of Colombia (DANE) released on Monday night.
In February 2014, the output of the manufacturing sector, excluding coffee threshing, rose 2.8% compared to February 2013.
This year-on-year figure is the third positive result in a row (1.5% in December 2013 and 0.1% in January 2014), which Colombia has not seen since June, July and August of 2012.
Still Gloomy
However Colombian industry still faces closing factories and an overall drop in production.
Mazda recently announced it would be shuttering their last Colombian plant, highlighting the tough times the manufacturing sector is having.
MORE: Mazda to shutter their car plant in Colombia
The number of people employed by the sector decreased 1.2% compared to February 2013, another drop from the January year-on-year decrease of 2.2%.
The Colombian Peso strengthens
In recent weeks, the Colombian Peso has appreciated against the US dollar. This, combined with the free trade agreement with the US makes imports cheaper. This makes it tougher for local manufacturers because of the cheaper price of importing and the decreased price goods fetch when a currency is high against the US Dollar.
MORE: Colombian peso gains 6% on pressured dollar in 2-week period
MORE: As peso weakens, Colombia’s manufacturers still hurting over US trade deal
Year-on-year percentage change in Industrial Production in Colombia (including coffee milling)
Sources
- Muestra Mensual Manufacturera (DANE)
- Colombia Industrial Production (Trading Economics)
