Colombian exports fall in August 2024: these are the most affected sectors

Colombian exports reached US$3,845.0 million FOB in August 2024, 2.5% below the figure reached in August 2023, according to the most recent report of the National Administrative Department of Statistics (DANE).

This decline, mainly attributed to a 14.4% drop in the external sales of the Fuels and products of extractive industries sector, contrasted with the positive outlook observed in other key sectors of the economy.

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Sectors most affected by the fall in Colombian exports

The fall in Colombian exports in August is mainly due to a decline in exports from the fuel sector. International trade in fuels and products of extractive industries accounted for 44.9% of total FOB value and experienced declines in several categories.

The most significant drop in the sector was in sales of petroleum and related products (-10.1%) and of hard coal, coke and briquettes (-27.1%), which together subtracted 13.7 percentage points from the group.

The volume of crude oil exported in August 2024 reached 14.8 million barrels, an increase of 2.5% over the same period of the previous year, although not enough to offset the fall in total values due to fluctuating prices in the global market.

The good news: foreign trade in agriculture and food increased

Although the overall result of Colombian exports in the month of August was negative, the truth is that DANE’s balance sheet also showed positive data. According to the report, the agricultural and food sector experienced a remarkable growth, with an increase of 11.4%, in August 2024 driven by a rise in exports of unroasted coffee (42.7%) and cut flowers (15.8%).

Colombian exports in the manufacturing sector also reported positive results in August, with an increase of 7.1% compared to the same month in the previous year, thanks to an increase in exports of chemical products (8.0%) and manufactured goods classified by material (6.3%).

These figures have been celebrated by the sector, with opinions such as that of Javier Díaz Molina, UN Economist and President of Analdex Colombia, National Association of Foreign Trade, who highlighted the performance and bonanza experienced by the agricultural and food sector.

Díaz Molina spoke of the fall in Colombian exports, but also highlighted the positive performance of certain sectors through Analdex’s social networks.

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Behavior of Colombian exports since January

The DANE report also provided data corresponding to the performance of foreign trade so far this year. Thus, in cumulative terms, total Colombian exports from January to August 2024 reached US$32,483 million FOB, a drop of 1.0% compared to the same period of 2023. Although exports of the fuel group fell by 7.5%, sectors such as agriculture and manufacturing showed resilience, with increases of 9.2% and 2.1%, respectively.

The results of the most recent DANE report underscore the importance of diversification and resilience of non-extractive sectors in Colombia’s current economic context, as the country continues to face challenges in the stability of international fuel and commodity markets.