Regional Economic Bulletin: Southwest, second quarter of 2025
The Regional Economic Bulletin is published by the Regional Economies Section of the Technical and Economic Information Department at Banco de la República. The views and potential errors are the sole responsibility of the authors and do not compromise Banco de la República or its Board of Directors.
The southwest region’s economy grew in the second quarter of 2025 driven by domestic consumption, which showed growth in retail sales and imports of consumer goods, stimulating road freight transportation from Buenaventura. Agriculture grew due to higher sugarcane productivity, which partially offset the negative impact of rainfall on perishable crops. In contrast, industry declined amid international trade tensions, despite increased demand from major trading partners. Likewise, the construction sector contracted due to a reduction in built areas and housing sales, despite higher mortgage credit disbursements.
Retail trade recorded a rise, driven by increased household spending and supported by higher flows in remittances, improved access to credit, and greater consumer confidence. Vehicle sales contributed to the increase, boosted by lower interest rates, the launch of new models, and favorable financing conditions.
Manufacturing production declined due to contractions in strategic sectors such as chemicals, pharmaceuticals, and metals. However, exports increased, driven by exports of coffee, sugar, and electrical appliances, with expansion into Asian markets.
The agricultural and livestock sector showed mixed results. Rainfall affected the collection of perishables but favored sugarcane productivity. Pig farming declined due to high input costs, while milk procurement increased as a result of higher demand and improved production practices.
Regional Economic Bulletin published to date (since 2025)
In order to present this content to the English-speaking public, since 2025 Banrep has been providing translations of the summaries. The full document, as well as the interactive bulletin, are published only in Spanish.
