The Bancolombia Research Center revealed this weekend the most recent balance of consumption in Colombian households with debit or credit cards (plastic money), which shows that the economic dynamics In this sector it remains downward and is almost a year and a half old with a balance in the red.
According to this report, the consumption indicator of Colombian households has registered a downward trend during the last 16 months, reaching its lowest level in the first quarter of 2024, according to data from Bancolombia cardholders.
March Card Consumption Report
Courtesy – Bancolombia
“This scenario continued throughout the last quarter, despite experiencing a rebound associated with the end-of-year season. In particular, the Bancolombia cardholder purchase index reached a value of 107 during 4Q23, evidencing a less favorable dynamic compared to the purchase volume observed at the closings of the previous three years (4Q20-4Q22),” they explained.
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Likewise, the report highlights that Holy Week It did not have the expected effect, since a reduction in household spending was observed, with a priority focus on purchasing goods in supermarkets.
March Card Consumption Report
Courtesy – Bancolombia
Although this period is usually one of high economic activity, spending during Easter in 2023 and 2024 showed significant contractions, with 2024 being the worst record in the last four years.
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“The restaurants' offer would have sought to adjust to the demand of diners during this season, and thus, be more relevant in their pockets. Spending on travel and tourism corresponds to purchases generally associated with previously planned decisions. This means that we do not find particular growth during this week,” the report says.
March Card Consumption Report
Courtesy – Bancolombia
Another relevant point of this report has to do with family spending in the majority of the cities analyzed, which also experienced a deterioration compared to the same period of the previous year, achieving the best results in tourist cities such as Cartagena and Santa Marta regarding the year so far.
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According to the consumption index based on legal minimum wages in force, progress was observed in spending levels compared to February in three of the economic strata analyzed. However, all segments experienced declines compared to the previous year, with those with higher incomes being the most affected.
Card payments.
“The increase in demand for typical foods this season, such as fish and shellfish, would also contribute to higher spending by families in supermarkets and restaurants; the latter seeking to adapt part of their menu to the specific requirements of diners. We do not observe a great impact on travel and accommodation expenses. This is explained because “Decisions in the tourism sector are generally planned in advance,” the report says.
Finally, Investigations Bancolombia reported declines in consumption levels in most of the regions analyzed, with Bogotá and Cundinamarca registering the most significant drop. In the cities, all presented a negative annual variation in consumption levels, with Bucaramanga being the one that showed the least decline and Neiva, Barranquilla and Cúcuta the most affected.
Economic recession
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“According to our consumption index based In the current legal minimum wages (SMLV), in March there were advances in spending levels in three of the economic strata analyzed compared to February, after the significant setbacks in the first two months of the year. On this occasion, those with incomes greater than 10 SMLV continued to present monthly declines, while people with incomes of up to 3 SMLV reported the greatest progress,” they concluded.
