Country's economic growth would suffer a sharp slowdown in 2027, according to BBVA Research analysts
The country's economy faces major challenges. Photo: Image generated with artificial intelligence.
TL;DR
- Colombia's GDP growth is forecasted to slow from 2.6% in 2025 to 1.8% by 2027.
- Key challenges include high fiscal and external deficits, persistent inflation, and restrictive financial conditions.
- Household consumption and public spending fueled recent growth, but domestic demand is expected to moderate.
- Investment, particularly in construction and housing, remains a lagging component of economic recovery.
- The structure of growth has shifted, with consumption and imports increasing their share in aggregate demand.
- The current account deficit is projected to widen, reaching nearly 3% of GDP by 2027.
- Inflation is expected to remain elevated around 6.5% in 2026 before a gradual decline.
- High fiscal deficits and significant debt amortization in 2026 pose fiscal challenges.
- The central challenge is for the private sector to lead economic expansion through increased productive investment.