Mining Sector Crash Pulls Colombia’s January Industrial Production Below Zero

Colombia’s overall industrial production decreased by 0.1% in January 2025 compared to January 2024, according to the national statistics agency DANE.

This decline occurred despite the manufacturing sector’s 1.9% growth, highlighting severe problems in other industrial sectors. The mining and quarrying sector collapsed with a sharp 6.0% decline, dragging down the entire industrial index.

Water collection, treatment, and distribution also contracted by 2.9%. These negative performances overwhelmed positive results from manufacturing and electricity supply.

When examining the twelve-month period from February 2024 to January 2025, the industrial decline appears even worse. The Industrial Production Index fell 1.7% compared to the previous year. The mining sector shrank 4.5% during this period, while manufacturing declined 1.6%.

Coal production has suffered tremendously as international prices plummeted from $140 to $90 per ton. Numerous mining operations reported accidents in early 2025, compounding problems after a 2024 marked by blockades and operational disruptions.

Colombia Faces Economic Struggle

The electricity and gas supply sector grew modestly by 0.4% in January, offering little counterbalance to the mining collapse. Only 13 of 26 industrial activities showed positive growth, while the other 13 dragged down the overall index.

Regulatory uncertainty intensifies problems for Colombia’s struggling mining sector. The government has proposed creating a state mining company and establishing natural reserve zones where mining concessions may be prohibited for up to five years.

Manufacturing maintained its December growth rate of 1.9% in January, showing resilience amid broader industrial weakness. The Davivienda Colombia Manufacturing PMI reached 53.8 in January, its highest level in a year, driven by expanded new orders and increased production.

This positive manufacturing trend reversed in February when the PMI dropped to 49, indicating contraction. Economic projections suggest Colombia’s economy will grow 2.5% in 2025, but this forecast faces serious challenges from struggling industrial sectors.

The negative industrial growth underscores Colombia’s economic vulnerabilities as traditional revenue sources falter. Policymakers now face difficult choices to revive industrial output while balancing environmental concerns and economic necessities.

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