Colombia's retail sales jump 11.7% in May as GDP growth slows to 2.4% in 2026

Retail activity in Colombia showed a strong rebound in May 2026. The National Administrative Department of Statistics (DANE) reported that real retail sales rose 11.7% year‑on‑year, or 14.7% when fuel sales are excluded, and employment in the sector increased 1.6%. The biggest gains came from motor vehicles and motorcycles, audio‑video equipment and other automotive goods, which together contributed more than six percentage points to the overall increase.

At the same time, the Banco de Bogotá warned that the Colombian economy is entering a period of slower growth. Its latest forecast projects GDP expansion of 2.4% for 2026 and a further dip to 2.1% in 2027, down from 2.6% in 2025. The slowdown is linked to weaker private consumption, tighter fiscal policy and higher interest rates. The bank also highlighted a sharp fall in new housing starts, a modest decline in oil production, reduced tourism arrivals, and a real‑terms drop in remittances despite record dollar inflows. Nevertheless, vehicle sales continued to surge, with a 62% rise in new car purchases in June, supported by expanding consumer credit.