Regional Economic Bulletin: Southeast, 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 southeast region’s economy showed mixed results in the second quarter of 2025. Oil production declined, affected by lower international prices, road blockages, and damage to pipeline infrastructure. The construction sector contracted, although sales of new housing increased, while land freight transportation declined due to road closures. In contrast, the agricultural sector performed positively, supported by favorable weather conditions with abundant rainfall and higher consumption of animal protein. In turn, retail trade showed signs of recovery in a favorable economic environment. Inflation in Villavicencio declined, driven by greater food supply and progress in hydroelectric energy. Likewise, the unemployment rate fell, although most of the newly employed were in the informal sector.
Agricultural production showed positive results, with rice and palm oil production standing out, favored by abundant rainfall, as well as cassava and plantain production. At the same time, cattle and pig slaughter in the region increased, driven by higher consumption of animal protein.
Oil activity declined, influenced by the drop in Brent crude oil prices in a context of geopolitical tensions. Across the nation, various factors disrupted stages of the production process, including blockades at extraction fields, reduced drilling of development wells, and infrastructure damage, which constrained the sector's performance.
In commerce, business perceptions regarding sales growth improved, supported by more favorable economic conditions and lower inflationary pressures. However, hotel occupancy was affected by road closures, the rice growers’ strike, higher tariffs, and a reduction in corporate events.
