Colombia's economy grew 3.6% in the third quarter from a year earlier, as strong growth in the agricultural sector and strengthening domestic demand helped offset a deepening recession in the oil and mining industries.

Growth in the third quarter was mainly driven by an increase in the number of households and business demand, as well as a 2.4% increase in agricultural activity driven by increased exports of coffee and tropical fruits, the Danish national statistical agency said on Tuesday. Manufacturing grew by 4.1%, while retail and wholesale trade grew by 5.6%.

The quarterly growth rate exceeded analysts' average estimate of 2.9% and 2.1% growth recorded in the second quarter.

The mining and hydrocarbon sector has been declining for the sixth consecutive quarter, having decreased by 5.7% in the third quarter compared to the previous year. This decrease followed a 10.2% decrease in the second quarter and reflects the impact of the high tax burden, restrictions on coal exports, reduced exploration activity and deteriorating safety conditions in key oil and coal production regions. The coal sector shrank by 5.6% in the quarter, following declines of 14.6% in the second quarter and 7% in the first.

Since the end of January, coal and crude oil exporters have been subject to a 1% surcharge to finance additional military and social spending in the Catatumbo region of northern Mexico. Santander Department amid escalating violence in the region along the Venezuelan border.

The administration of President Gustavo Petro has also used emergency powers in response to the escalation of violence along the Venezuelan border. In May, the government raised the withholding tax for miners to 4.5%, more than double the previous 2.2%, increasing financial pressure on an already strained sector.

The miners also protested against the Petro's decision to impose a total ban on the export of thermal coal to Israel, closing a loophole that previously allowed for some supplies. Mining accounts for 2.4% of Colombia's GDP and is the country's second largest export sector after oil.

The oil subsector shrank by 3.7% in the third quarter after a 6.9% decline in the second quarter, the sharpest drop since early 2024, when the hydrocarbon sector began to weaken. The reduction in exploration activity, tax pressure and social unrest have put serious pressure on the industry, said oil analyst Julio Cesar Vera.

In January–September, Colombia produced an average of 747,800 barrels of oil per day, which is 3.8% less than in the same period a year earlier.

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